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Facebook Stock on Downward Slide, Loses 23% in 2 Days

The company took a big beating immediately following the earnings report of Zynga, which is Facebook's next big revenue source after plain advertising. While the stock closed at $29.34 on Wednesday, it opened at $27.92 on Thursday. Facebook reported its quarter later that day and the stock cratered in after hour trading down to $23.30. It fell as low as $22.46 on Friday and ended the week at $23.70.

For the entire week, the stock lost $4.54, or 16 percent. Between Zynga and its own quarter report, the stock lost a maximum of $6.88, or 23 percent. The good news, which included a 50 million user gain for Instagram, was not enough to quell investor concerns over growth, including the fact that at almost one billion users, there has to be an inevitable slowdown. Facebook will also have to respond quickly to doubt that there is enough potential for an increase in advertising revenues.

Facebook's honeymoon period is already over. As publicly traded company, the honeymoon barely lasted one day and it is clear that investors won't give Facebook room for failure.

 

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