Facebook equity price drop — (08/17/2012)
Facebook has reached a record low since the popular social networking giant left the private market. The bears are crawling out of their caves to take advantage of this opportunity to score some extra cash flow, while business prodigy Mark Zuckerberg is playing a very different tune.
Drops in FB equity usually led to the same response from the young Chief Executive, that the Facebook team should pay minimal attention to the market and focus on pushing out a high quality and intuitive user experience. However, after today’s price per share had been displayed, Zuckerberg took a different approach. Instead of sidestepping his way around the problem, he addressed it directly with the rest of the Facebook team.
The price for each share has dropped a whopping 50% (from $38 to $19.05 or check FB on Google Finance) since the IPO in May, and after considering the losses, investors and FB employees alike are looking for somebody to scapegoat. It should appear as no surprise that Zuckerberg was held responsible for the drastic fall in FB’s equity.
Since the plummet, people are starting to wonder whether or not Zuckerberg is fit for the title of Chief Executive. While his track record may prove impressive, some are beginning to think that he’s not fit to handle a billion dollar industry such as FB. Because Facebook still owns more than 50% of the shares in the company, every decision needs to be finalized with Zuckerberg before anything can be carried out. Which, as expected, points even more fingers at Zuckerberg’s management experience.
To end on a lighter note, for all you bargain hunters out there, FB could turn quite the profit in NASDAQ if you’re willing to take the low risk hold. While FB may have a bright future ahead of it, it’s expected to reach that benchmark much later than sooner.