Facebook Shares Have Finally Stopped Plummeting
Mark Zuckerberg will be able to sleep just a bit easier this weekend, as it appears as though the decline in shares of Facebook has been halted, at least for now. Facebook had their IPO (initial public offering) on May 18th. After opening at $42.05, shares of Facebook traded lower - and lower and lower. Week after week, Facebook shareholders hoped that the bottom had been reached, and week after week, shares continued to plummet.
The precipitous decline seems to have ended (at least for now), as shares of the company have just posted their first green week since Facebook became a publicly traded company in mid-May.
Let's look at the weekly results for Facebook:
May 18th - Open at $42.05, closed at $38.23
Week of May 21st - Open at $36.53, Closed at $31.91
Week of May 29th - Open at $31.48, Closed at $27.72
Week of June 4th - Open at $27.20, Closed at $27.10
Week of June 11th - Open at $27.18, Currently Trading at $28.65
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Shares of Facebook were besieged from all angles after the company went public on May 18th. Concerns over how the company would monetize mobile users, General Motors' public withdrawal of their Facebook ad campaign and a bungled opening on the NASDAQ all helped to leave a sour taste in the mouths of the investing public when it came to shares of Facebook.
However, the flow of news has started to turn a bit more positive over the past week, and this has helped to stabilize shares of the company.
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As of this moment, FB currently trades for $28.63 per share, which gives the company a valuation of $61.40 billion. This is a substantial haircut from what the company was originally valued at when it went public about a month ago.
Is Facebook a buy at this level, or is it wise to continue to avoid?
Filed under: General Market News
