Google+

Facebook Stock Plunged

Shares of Facebook’s stock plunged nearly 10 percent on Tuesday, closing at $28.84, a 24 percent fall since the company’s initial public offering at a price of $38 per share on May 18.

The decline came on a day when most of the market was higher, with the S&P 500 closing up 14.6 points (1.11%) while the Nasdaq was up 33 points (1.18%).

Facebook’s highly anticipated IPO was one of the largest in U.S. history, but has delivered the worst trading performance for its first five days of trading of any offering during the past decade, according to Bloomberg News.

Although part of the slumping stock price has been driven by investor skepticism about the social network, options traders are also bending the price by making bets on the future direction of the shares.

Jon Ogg of 24/7 Wall Street said there was “explosive” trade in Facebook on the first full day options were available, with a “push and pull” among investors seeking “to pick their entry point ahead of time if they are interested in buying Facebook at lower prices.”

Peter Cardillo of Rockwell Global Capital said Facebook’s slide was a result of “the combination of bad press and sell options feeding on the market.”

“It could be technical, since each time it is making new lows and it feeds on itself until it exhausts itself,” the AFP news agency quoted him as saying.

Wedbush Securities said in a note to clients that Facebook’s stock was still spinning from a “messy” public offering, which included technical glitches on the Nasdaq and worries that Morgan Stanley, the lead IPO underwriter, may have lowered its price estimates at the last minute and shared that information with select investors.
A number of lawsuits have been filed over the matter.

Wedbush also noted that the number of shares offered by Facebook in its IPO might have simply overwhelmed demand, putting downward pressure on the stock.

Other analysts say Facebook’s falling stock price reflects concerns about whether the company is truly worth its stratospheric market valuation.

But Wedbush analyst Michael Pachter and associates said they remain bullish on the company’s long-term prospects.

“Despite these near-term issues, we expect dramatic long-term revenue growth,” the brokerage said, noting that it was maintaining its $44 per share price target.

“We think that our price target is warranted due to Facebook’s huge upside potential for revenue and earnings growth.”

Facebook generates most of its revenue by selling advertising on its site.  The company took in $3.71 billion in revenue last year, with net earnings of around $1 billion.

“As Facebook enhances the user experience, we expect three things to happen,” Pachter said.

“First, we think that a better experience will lead to a greater number of users; second, we think that a better experience will lead to higher levels of engagement; and third, we think that a greater user base that spends even more time than the current user base will be an irresistible target for advertisers.”

Wedbush also cited Facebook’s market dominance as a key factor in future growth.

“Facebook has built a huge moat between it and its competitors, and we endorse [chief executive Mark] Zuckerberg’s mission (if not his wardrobe).

In a related development, the Russian-based social network Vkontake announced it was delaying its planned public offering due to the Facebook misfortune.

In a Twitter message, chief executive Pavel Durov said that Facebook’s IPO “has destroyed the faith of a lot of private investors in social networks” and that Vkontake’s IPO “has now been postponed indefinitely.”

Despite investors’ weariness over Facebook’s stock, rumors that the social network might acquire Opera Software sent shares of the Norwegian Internet browser company soaring as much as 22 percent on Tuesday.

By the close of trading in Oslo, Opera Software’s shares were still up 19.5 percent on the first day of trading since speculation of a possible Facebook acquisition broke late last week.

If a deal were to go through, it could give Facebook control over Opera’s highly regarded cellphone Web browser, pitting the social network against companies such as Microsoft, Google and Apple.

Source:  news wire redorbit

Entertainment

Best Picture Nominated WWII Biopic Arriving on DVD

  Hacksaw Ridge DVD Review by Kam Williams Best Picture Nominated WWII Biopic Arriving on DVD     Desmond Doss (Andrew Garfield) was born in the Blue Ridge Mountains where he was raised as a Seventh-day Adventist. Devoutly religious, he followed his faith's literal interpretation  of the 10 Commandments, including the 5th's dictate that "Thou shalt not kill." So, when he rushed to enlisted in the Army right after the Japanese sneak … [Read More its Good for You.....]

Books

The President’s Kitchen Cabinet

  The President's Kitchen Cabinet The Story of the African-Americans Who Have Fed Our First Families, from the Washingtons to the Obamas by Adrian Miller University of North Carolina Press Hardcover, $30.00 292 pages, Illustrated ISBN: 978-1-4696-3253-7 Book Review by Kam Williams “[This opus] vividly tells the stories of the African-Americans who worked in the presidential food service as chefs, personal cooks, butlers, stewards … [Read More its Good for You...]

Art

The Day After the Day Of

  The Day After the Day Of by Paul Ilechko   The sky sheds its tears. This morning is the morning of the day after. The day of mourning, the day after the day of.  I beseech the sky to shed tears in order to wash away the tears on my face.   This is the first day of the time after. This is the beginning of a new time, the days of pain, the days of sorrow. We are in mourning. The sky looks down and sheds its tears for … [Read More its Good For You...]

Real Estate

History Being Sold to the Highest Bidder

  History Being Sold to the Highest Bidder by Amy Lignor   For the longest time, scientists and archaeologists have been confused and bemused by various discoveries they’ve unearthed that offer little or no explanation as to the who, what, and why of the people who created these things or left them behind. Even now, in 2017, there are discoveries being studied; stories that were once legends now have actual bits of proof being found that … [Read More its Good for You.....]

Lifestyle

Trump and Traditions of the Founders

  Trump and Traditions of the Founders By Ezrah Aharone Maybe I should watch more CNN or MSNBC to be convinced since most Black people seemingly regard Donald Trump as some sort of abrupt political mutation who violates America’s traditions. What I see in Trump is “America’s traditional reflection in the mirror.” I see the exact same hardline and hostile government that the founders deliberately engineered with deep political and racial … [Read More its Good for You...]

Outdoors

Skeeter Recognized Again for Excellence in Customer Satisfaction

  Skeeter Recognized Again for Excellence in Customer Satisfaction    Skeeter, a leader in performance fishing boats, announced today from the Miami International Boat Show® that the National Marine Manufacturers Association (NMMA®) has again recognized Skeeter with a CSI Award for excellence in customer satisfaction in the Freshwater Fiberglass Outboard Boat category. This year’s award is the fifteenth consecutive for Skeeter, an … [Read More its Good for You...]

Sports

Super Bowl LI’s Message: Patriotism

  Super Bowl LI’s Message: Patriotism by Amy Lignor   There are some people waking up this morning completely stunned. Why? Because they shut the Super Bowl off after the third quarter. They knew what was “going to happen” and had to go to work today, so why bother staying up and watching the rest of what was going to be an obvious blow-out? Besides, they had been given some memorable commercials, a great country western singer ushering … [Read More its Good for You...]

Business

Mobile Phone Forecast: Is Saturation of the Market in Sight?

  Mobile Phone Forecast: Is Saturation of the Market in Sight? by Amy Lignor   It is a fact that when people say no matter where they look – whether it be while walking down a neighborhood sidewalk, driving in their cars, shopping at the grocery store – it seems that everyone on the planet is holding a phone to their ear, or staring down at the screen in order to text, get information, search online, or watch Facebook and Twitter … [Read More its Good for You...]

Travel

It’s Time to Save for Summer Vacation!

  It’s Time to Save for Summer Vacation! by Amy Lignor   Putting the “pennies in the piggy bank” is something everyone in this world does (or wants to do) on a daily basis. But NOW is the time to take those “extra” pennies and purchase that great piggy bank that’s perhaps wearing some sunglasses, a colorful hat, some swim trunks…anything that makes that new piggy remind you of the one thing you want to do all year long – go on the … [Read More its Good for You...]

Green Living

Creating the Perfect Vegetable Garden

  Creating the Perfect Vegetable Garden by Amy Lignor   Many are still dealing with that wintery mix Mother Nature just loves to toss down from the sky this time of year. Yet, that gardener living inside the soul – the one just dreaming of the sunny skies and lazy rainy days that are must-haves in order to grow the best vegetables possible – is already jotting down the facts, tricks and tips they need to know in order to make that … [Read More its Good for You...]