Life On Earth
Facebook Stock Plummets - Zuckenberg Off Forbes Richest People List
It looks like even Mark Zuckenberg and the top Facebook execs are only human, as the social networking giant's stock has plummeted from $38 at the social network's NASDAQ debut 2 weeks ago to $28 a share, which is a 24% slide.
So far, Facebook co-founder David Moskovitz has lost $389 million, while Zuckenberg himself has lost over $2 billion. Things started to look better yesterday (Thursday, May 30th) as the stock jumped to $29.60, but at the time of writing the stock is hovering right under $28. Will Facebook turn things around? Investment into Web 2.0 companies is souring, so things are not looking that great right now. To make things worse, the handling of the shares is now being investigated by the US Securities and Exchange commission from claims that growth forecasts weren't disclosed to all shareholders.
Facebook itself isn't the only one suffering from the stock slide. Russian clone VKontakte (InContact) is delaying it's Initial Public Offering indefinitely as a result of Facebook's poor NASDAQ performance. CEO Pavel Durov stated through a tweet that Facebook's failure has severely hurt investor confidence in social networks. It's probably very safe to say that we won't be seeing Digg or Reddit going public any time soon.
By Denis Ivanov
There are no comments on this item.
Copyright 2006-2014 Educated Earth