Facebook Shares Holding at $29

Facebook Shares Holding at $29

Facebook’s well-debated IPO event and overestimation in value has sent its shareholders on quite the rollercoaster ride. Unfortunately, the shares haven’t gone up lately as much as they have gone down. The price has dropped almost $10 a share in the past week, and experts say that $29 isn’t even the bottom.

Fear among investors is causing the price to plummet even further, and ones that are sticking out aren’t confident that the social network’s value will be going up anytime soon. Because of the falling stocks, the value of the company has fallen to $63 billion from its original valuation of $104 billion; that’s nearly a 40{7e4ee7cd997d36f6dec43befd6b19c37edf0959bbf61766e988f901dd91e96d7} in less than two weeks.

Currently, who’s to blame for overpricing the social network is unclear. Some spectators believe it was Facebook itself, and others think it was Morgan Stanley, lead underwriter for Facebook’s IPO event, who’s to blame. JPMorgan and Goldman Sachs were also major players in the underwriting and revised their own estimates to match Stanley’s. Facebook allegedly told big investors that the company was worth less than its valuation because of the lack of ads on their mobile versions of Facebook.

From lawsuits to lukewarm results on opening day, Facebook is not faring well after going public. After a 23{7e4ee7cd997d36f6dec43befd6b19c37edf0959bbf61766e988f901dd91e96d7} drop in share price since opening day and more details to come about the fumbled IPO, it’s not looking spectacular for the world’s largest social network.

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