Investors took another $10 billion valuation from Facebook this weekend, moving shares to an all time low. The social networking company have offered no forecast and analysts say that mobile investments could put future earnings under pressure.
Facebook have a market capitalisation now of $48 billion, half of their IPO launch value of $100 billion in May. Facebook CEO Mark Zuckerberg is said to have lost $2.3 billion on the latest slide in company valuation.
The shares have lost around 40 percent of their value since the $38 launch value on May 18th this year. They fell to $22.28 on Friday, recovering to $23.03 later in the day.
Reuters added “At least four brokerages, including Barclays Capital, cut their price targets on Facebook stock, although most suggested it was worth much more than current trading levels.
Created just eight years ago, Facebook continues to grow — hitting 955 million active users a month at the end of June — but its shares have slid since its May IPO as investors questioned a valuation of more than 50 times earnings.”
Kitguru says: The troubles continue for Zuckerberg. He was worth $19.1 billion in May. Several months later he is worth $11.98 billion.