|Friday, 08 June 2012 12:21|
Facebook’s share has dropped by more than 30% below its listing price, and has shed about US$30 billion to US$35 billion of its value since its IPO (initial public offering) on May 18. The stock reached an all-time low of US$25.87 on June 5, 2012.
There have been many reasons cited for Facebook’s “debacle”. Some believe it was caused by the company’s failure to disclose poor advertising revenue to investors just prior to IPO. Others blamed the operators of the Nasdaq stock market for failing to properly process buy-sell transactions on the day of the IPO.