More bad news for Facebook investors; shares fell as low as $26.57 this morning. While the stock is currently trading at over $27, there's nothing to indicate it will make back up to its targeted $38 per share price anytime soon. Of course, this isn't news to anyone who has been following the Facebook IPO, It has been one bad thing after another.
The latest blow to the social networking giant comes in the form of yet another lawsuit. This time, Facebook shareholders are suing CEO Mark Zuckerberg over some shares he sold just as the company went public. Essentially the lawsuit claims that Zuckerberg had inside information about the company being grossly overvalued and he liquidated the shares to keep from losing millions.
As you recall, this certainly isn't the first lawsuit given rise to by Facebook's IPO. Facebook and its underwriters have lawsuits pending with investors in New York, California, and possibly even Massachusetts. Not to mention countless other investigation by Wall Street regulators, the Securities and Exchange Commission, and even congress.
This morning's $26.57 per share price marks a new low for stock in the company, but some investors believe it could still be a great investment for the longterm. Facebook has been vigilant making some refinements to their advertising platform and have made headway with their mobile ads in particular. Also they continue to expand their reach by opening a new office in Dubai which has already sparked marketing interests in areas like North Africa and the Middle East.
We will keep you up to date on Facebook stock prices and the ever increasing amount of lawsuits as news becomes available. In the meantime, hopefully Facebook can do something to make shares seem more attractive to investors. Fixing their mobile platform and expanding the reach of their advertising is a good first step, but I don't know if it will be enough at this point.