Look out, below! Facebook stock marked the return from the long weekend by tumbling eight percent to an afternoon low of $29.25. That means the shares have lost nearly a quarter of their value since their much-hyped debut at $38 less than two weeks ago.
The overall market appears to have shrugged off the social network’s misfortunes as both the Dow Jones and the Nasdaq have posted modest gains.
Facebook’s latest swoon does, however, appear to be pulling down its ill-starred step-brother, Zynga. The social game maker has fared even worse than Facebook, falling nearly 15 percent today alone.
Facebook’s underwhelming performance since going public have set of recriminations and lawsuits between the company’s bankers and investors who accuse Facebook of failing to disclose that its growth prospects were slowing.
Facebook’s flop has set off hand-wringing about the prospect of a new tech bubble or a gloomy market for future IPO’s.
As ReadWriteWeb reports, however, not everyone can come bolting out of the gate. Its three year post-IPO chart, which shows a slumping Apple and a soaring Yahoo, underscores how share price may not be the best metric of determining a company’s long term value.
Related research and analysis from GigaOM Pro:
Subscriber content. Sign up for a free trial.
- Controversy, courtrooms and the cloud in Q1
- Facebook’s IPO filing: ideas and implications
- Q4 Wrap-up: SOPA and the future of digital content
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here