Facebook shares drop to US$29

The social network's shares are down nearly 8 per cent, currently hovering around US$29 per share. That's far off from the recent initial public offering (IPO) price of US$38.

Facebook's shareholders can't catch a break.

The company's stock is now trading down to US$29.44, shedding US$2.46, or about 8 per cent of its market-opening price. The decline came on the same day that trading on Facebook was opened to the options market. According to Dow Jones, about 162,000 Facebook options were traded by 9am PT, 29 May 2012.

Facebook's continuing decline has struck fear among investors, who wonder how low the company's shares might fall. Facebook went off earlier this month at US$38, only to watch its stock plummet in subsequent days. At its current price, Facebook shares are down more than 23 per cent since the IPO.

As Facebook's price has declined, so too has its market capitalisation. In fact, the company's current market cap values the company at about US$63 billion. When the company went public, its market value was about US$104 billion. In other words, it has lost more than two Yahoos worth of value (the online company has a market cap of US$18.7 billion) in less than two weeks.

With no end to the drop in sight, investors and regulators are looking for someone to blame. In the next several months, there's a good chance that even more details behind the fumbled IPO and subsequent decline will be revealed.


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MichaelL4 posted a comment   

Good job, I hope it drops to its real value of about $5.00. It's simple not worth this sort of money, for it to be worth more FaceBook needs to MAKE more profit, a lot more and the only way it can do this proper is by in your face advertising or selling of your private details. And if they do this, they'll loose their huge database of members and hence be worth less than Yahoo.

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