Facebook Stock: Shares Drop Below $30
Facebook stock wasn’t looking much better at the end of the day on Tuesday, closing at $28.84. This effectively puts the shares down 24 percent since its public debut on May 18th. However, despite the dip in price, the company is valued at $79 billion, which, of course, is still incredibly impressive.
For those who have been away from everything for a while, the Facebook IPO was one of the most highly-anticipated debuts in history. However, what should have been a celebration for CEO Mark Zuckerberg and crew quickly turned in a throbbing headache. In addition to technical problems that caused Nasdaq to delay trading, the company is also facing a few lawsuits which claim underwriters Morgan Stanley slashed forecasts and only told a select few about the alterations.
Facebook, of course, claims that these investigations are “without merit”.
If you’re worried about the financial future of Zuckerberg and company, I would strongly advice not getting too emotional over how they’re doing. According to ABC News, those who were granted stock options are “still doing better than most people”. Those who bought shares since the IPO, on the other hand, will just have to wait and see how things play out.
All hope is not lost: Wedbush analyst Michael Pachter believes the 12-month target price to be $44 per share.