Facebook Inc. shares continue to fall as their revenue outlook is questioned by investors. Since Facebook first went public at $45.02 on Friday, stock prices have dropped to $34.03. This dropped Facebooks value from $104 billion to $90 billion. The main problem is that Facebook shares were overvalued and people think they are too expensive. Brian Weiser, a market analyst said this:"If I had a choice between Facebook at $33 a share and Google at $600, I'd still take Google,”. Many analysts are asking the question:"how could one of the most feverishly-anticipated IPOs in history perform so poorly in its public debut and who’s to blame?"
I think that many people are shocked that such a powerful and prevalent company is doing so poorly on the market. If prices for the stock were set at a more reasonable price , the stocks would most likely be on the rise instead of plummeting.
I don't know how people can be surprised by how poorly Facebook is doing on the stock market. Although the company is worth some ridiculous amount of money, they are still extremely unclear where they make their profit. There is only so much advertising that you could do on Facebook without pissing people off and now that they are a public company they probably have to cut down on the amount of personal information that they sell. Now that it has become a public company they have rumored at expanding their brand into the cell phone market in a collaboration with HTC.
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