A few days ago, Facebook launched its initial IPO and valued the shares at $38 each. That occurred on a Friday, and the shares plummeted in value by the next Monday. Prices for shares fell 10% from that initial offering, which is not good news for the company. Such a situation does not mean the end for Facebook by any means, but people are quickly losing hope in the company’s stocks.
At this point, the price is too high for many investors, and Facebook does have a lot of questions to answer. Many analysts place some blame on the NASDAQ itself for early errors during trading though. Either way, the company will need to recover quickly from this road bump to prove that it truly is worth billions. There are still a lot of factors to like about Facebook, and bigger investors are not going to forget about that fact anytime soon.