Facebook stock drops another 4 percent

Aug 02, 2012 by The Associated Press

Facebook's stock is getting closer to losing half of its value since its highly anticipated public offering.

It lost 84 cents, or 4 percent, to close Thursday at $20.04. Another 5 percent decline would bring it to $19 — half of its initial offering price of $38. The stock traded as low as $19.82 during Thursday's session.

The has been falling since Facebook released quarterly earnings last week for the first time as a public company. Investors were disappointed despite second-quarter results meeting Wall Street expectations, with revenue one-third higher than last year.

began trading publicly in mid-May. But since then, investors have been concerned about its ability to keep increasing revenue and make money from its growing mobile audience. Many analysts hold positive long-term views.

Explore further: Sony forecasts $2B loss as smartphones lag (Update)

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Caliban
not rated yet Aug 02, 2012
This narrative never fails to amuse...apparently Wall Street is gobsmacked that this traditional bait-and-switch offering didn't put a few billions into their coffers --overnight-- as planned.

Looks like they're gonna have to ACTUALLY WORK for that payoff!

Nah --better to let this one wither on the vine than have to actually empirically justify the value of this boondoggle --I mean, investment-- to get someone to invest their hard-(or not so hard-)earned dollars in it.

Those thieves are going to be angry about this flop for a long time.

Verily, the prospect doth warm the cockles of my cold, black heart.