Facebook’s stock price has dipped to its lowest value since the company’s initial public offering in May this year, falling to less than half the initial $38 value per share. On Friday Facebook’s stock closed at $18.06.
The slowly sliding price has been blamed on Facebook’s apparent difficulty to make money on mobile advertising, though some analysts are still confident that the social network will be able to reverse the dropping value in future. The stock price is expected to fall even further when more stock lockups expire on 15 October and 15 November this year but, according to analysts from BMO Capital Markets, Facebook should rebound after the extra shares have hit the market.
The analysts, speaking to Reuters, said “We expect investor attention to return to fundamentals after the technical challenges presented by lock-up expirations over the next six months have been absorbed by the stock.”
Source: Ars Technica