Registered: Jul 2012
07-28-12 10:28 AM
Facebook stock fell again down to $23.81, a drop of 11.3 percent, bringing the social app to a new all-time low, and ripping about $3 billion from Mark Zuckerberg’s pocketbook in a little less than 48 hours, CNET reports.
Oddly enough, the company itself is earning a profit and increasing its consumer base. This, says John Fitzgibbon of IPOScoop.com, shows a “disconnect between the stock and the company,” USA Today reports. Second quarter revenue grew 32 percent, and its user base has grown 29 percent from last year to 955 million active users.
Left to be seen is how the company will do post lock-up, when more insiders can sell shares. 90 days after the IPO, August 15, 268 million shares will be available for sale, however, on November 13, 1.24 billion shares will be available. Zuckerberg has sold 30.2 million shares at $37.58 a share to pay taxes, CNET reports, earning him about $1.1 billion.
Alex Ashby, research analyst at Global X Funds told the Associated Press, “People are waiting for a really huge growth moment in revenue, advertising, dollars per user. People had expected that Facebook is going to revolutionize advertising….We think it’s still a definite possibility, but maybe further down the road.” Which leaves readers to believe that good things might still be in store.