Featured Articles

AMD SVP John Byrne named turnaround exec of the year

AMD SVP John Byrne named turnaround exec of the year

Director of AMD’s PR Chris Hook has tweeted and confirmed later in a conversation with Fudzilla that John Byrne, Senior Vice…

More...
Shield Tablet 8 launching on Tuesday July 22nd

Shield Tablet 8 launching on Tuesday July 22nd

We knew the date for a while but as of right now we can confirm that Nvidia’s new Shield Tablet 8,…

More...
AMD confirms 20nm in 2015

AMD confirms 20nm in 2015

Lisa Su, Senior Vice President and Chief Operating Officer, AMD, has confirmed what we told you back in May 2014 – …

More...
AMD reports loss, shares tumble

AMD reports loss, shares tumble

AMD’s debt load is causing huge problems for the chipmaker -- this quarter it had another substantial loss. The tame Apple Press…

More...
AMD A8-7600 Kaveri APU reviewed

AMD A8-7600 Kaveri APU reviewed

Today we'll take a closer look at AMD's A8-7600 APU Kaveri APU, more specifically we'll examine the GPU performance you can…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Thursday, 02 August 2012 11:55

Facebook slide continues, stock hits record low

Written by Peter Scott



Market cap $39.2 billion


Facebook’s overhyped IPO is now more than two months behind us, but the company is still making headlines for all the wrong reasons.

Although the tech press and quite a few analysts voiced their concerns over Facebook’s IPO valuation several months ago, much of Wall Street bought into the hype and we all know what happened next.

Two months on, Facebook’s stock is still underperforming and on Wednesday it hit a new all-time low, $20.88. The company’s market cap is now $39.2 billion, a far cry from the hype induced $100 billion pipe dream.

Worse, there seems to be no end in sight. Zynga recently released some rather worrying results, several major FB investors pulled out, executives are jumping ship and Wall Street is looking for a scapegoat, hence calls for Zuckerberg’s resignation are growing louder.

What’s more, Facebook employees will be allowed to start selling their shares in August and the bulk of the shares will be unlocked in November. If the downward spiral continues, quite a few could choose to unload their shares at current prices, which are roughly half of the original IPO price of $38.

It is a rather interesting twist. Most tech writers are not Wall Street types, they are not seasoned traders or economists, yet the tech press seems to have done a much better job when it comes to Facebook than mainstream business oriented outlets. We said it would be ugly and we were right.

Peter Scott

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments