May 18, 2012 was one of the most spectacular and much-awaited market debuts in a long time. On that day, Facebook’s IPO offering had a stock issue price at $38, a valuation that was IPO third-highest. In a matter of seconds after it began, the price per share shot up to $45, over 18 percent on upward trend. By the end of the day, however, Facebook stock came back to $38.23, close to where it started hours earlier.
The IPO event, along with everything about Facebook going public, has been sensational and much-talked about. The tech stock has remained to be one of Nasdaq’s busiest stocks. Poised to monetize the roughly 900 million Facebook users every month, Facebook had been well on its way into getting hefty advertising on the social networking site.
Back on the trading floor, the market has proven to be tough since that fateful day in May. “Facebook’s growth has plateaued,” said stock expert Francis Gaskins. These days, Facebook founder and owner Mark Zuckerberg stands to lose billions of dollars as Facebook stock plunges to an all-time low of $23.81 per share, an 11.3 percent stock price decrease.
Reports have it that Zuckerberg lost a mind-boggling $3B in 48 hours.
While there are revenues, investors are starting to be concerned, especially that the stock isn’t showing signs of immediate recovery and is in fact on a steady downward spiral.
Facebook’s mission to monetize through advertising is the stock’s undoing. The social networking site is simply not pulling in all the advertising it set out to get. Some advertisers have also pulled out their advertising campaigns after having gauged the site to be ineffective in getting revenues for them. Especially leaving much to be desired is Facebook’s mobile ad growth. Even as a good slice of Facebook users accesses their accounts from mobile devices, Facebook’s mobile advertisements are not bringing in the much needed revenues.
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