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Facebook Stocks Drop From $38 to $31 After Three Days

Posted on 23 May 2012 by pinoytutorial

4 days ago, some people wondered whether the hype surrounding the Facebook IPO is well-deserved. Now, 3 days after the opening bell sounded what could have been a financial coup for the company, stock prices are dropping.

Down 8.5% since Nasdaq offered it at $38 apiece (now @ $31), FB shares are hurting more than young billionaire Mark Zuckerberg or the horde of millionaire wanna-bes that grabbed a slice of this virtual money machine.

Across a wider spectrum, this plummet of stock shares are engendering cascades of repercussions. One particular entity that could be hurt a lot by this drop is the state of California herself. According to reports, expected tax generated by the sales of FB stock which could go as high as $1.9 billion could throw budget estimates off the mark.

Reasons for the negative changes are plenty but with the absence of an official statement from FB HQ, these remain just fodders for rumor-mongers and analysts. Could it be the delay caused by Nasdaq glitches? Some would point to that but Nasdaq bigwigs are quick to deny these connections. It could be due to a whole lot of reasons ranging from forecast discrepancies to legal battles looming in the background amid the IPO launch.

Still, a lot pray that this is not a continuous plummet and that it could rebound at anytime (for sure, they are also doing it with their fingers crossed) and it still could. As they say, the game is still not far off from the opening bell and a lot can still happen.

(source)


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