Facebook shares fell below the placement price

Immediately after Facebook entered the stock exchange, the company's shares quickly rose in price, to about $ 41 each. In this case, when placing shares were estimated at 38 dollars. Despite the initial rush, the company's shares began to fall in price, and soon experts began to predict a fall in the value of Facebook securities below the offering price. Despite all attempts to prevent such a development of events, the price still fell.

So, now the price of the company's shares is a little over $ 35 per share (remember, when placing the stock price was $ 38 per share). This state of affairs, of course, may not please the company’s management, but so far the trend has remained the same. Experts believe that all this is a consequence of a greatly overpriced accommodation price. After all, this social network valued itself at $ 100 billion, although there are simply no special prerequisites for such a high price.
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However, in the near future, Facebook and social network partners in the face of some banks and investment funds will try to rectify the situation. Probably, the company will show great success in making money, and especially in the sale of advertising. If investors are inspired, then we can talk about the possibility of increasing the price of shares.

It should be noted that more than 900 million people are already registered on Facebook (according to the leadership of this social network). The number of Facebook users is gradually increasing, and it is difficult to say how long this growth will last. However, the achievements of the social network, as we see, is not a guarantee of success when entering the stock exchange.

Via mashable