Facebook Inc. (FB) shares fell below its IPO (initial public offering) price of $38 , on just its second day of trading (Monday, May 21st).
According to WSJ, Facebook shares recently traded at $36.46, down 4.6%. A move below $36.50 takes Facebook’s overall valuation under $100 billion.
It is usually considered disappointing for a new stock to fall below its offer price so quickly.
And CNET has listed the reasons for Facebook Shares falling quickly.
-Glitches with the Nasdaq that slowed early orders.
– An IPO price that got a last-minute bump
– And indications of lackluster demand from institutional investors. – But the most important is the underlying concern and growing realization that Facebook just isn’t worth $100 billion.
According to Reddit discussion, facebook shares price is going down mainly because of the fact that Facebook’s ad revenue is not stable as they were not able to attract big advertisers. Most of the people who bought the Facebook shares were non-professionals, initially they just bought the facebook shares at high price just because they like Facebook.
