Facebook has reported a below $20 share price for the first time late last week.
Facebook’s overrated and spoiled initial public offering (IPO) has led to serious qualms concerning the firm’s ability to produce cash, after reporting a minimum number of 83 million fake user accounts and causing its stock price to drop down by $20 on Thursday, with trading scraping above that figure at $20.04.
Investment banks have originally granted the popular social network a value of $100 billion as a proposal to fire up sales commission. Now, such report has given the firm’s shareholders a perception that its whimsical company worth has been cut down to less than half its monetary value, currently playing around a price of $34 billion.
The spoiled IPO was an outcome of the NASDAQ systems failures, and have eventually affected several investment banks, including UBS, who is declaring a loss on the best part of $356 million. The bank, however, has stated that it will be searching for ways to retrieve the full amount during its earnings meeting.
Meanwhile, in contrast to Facebook’s continuous IPO fiascos, the social network’s competitor LinkedIn has depicted a good standing, reporting a more-than-expected turn on its revenues and profits as seen in its financial statements.
Eventually, Facebook CEO Mark Zuckerberg also experienced a drop in his personal riches by more than $400 million on Thursday alone.
Image: Alex Proimos via Flickr (CC)