Facebook shares falling to a record low
Facebook just scored a new milestone since opening to the stock market, but one which is certainly not going to take pride in the company: shares reached their lowest point since May, trading just USD $18.06.
A while sometimes been expressing concern about what is happening, one of them being Mark Zuckerberg himself . Currently, the main concern of investors is because apparently the social network advertising is not working according to what was expected, and that clearly is affecting the stock market performance.
Debra Aho Williamson, eMarketer analyst says that there are many doubts about the effectiveness of advertising on Facebook, and about what is really worth. In view of the facts, estimates and forecasts for the social network are down by as much as last year, growth in advertising sales was 68%, but this year is expected to be close to 34%.
Moreover, Facebook’s total revenue increased 88% last year, and this year could stay only 36%, which is already causing alarm bells of the principals involved.
Meanwhile, on Facebook already working on solutions to improve the situation, but as Williamson analysts believe the company has been slow. And in the absence of a change, the shares will go down to much less than half of what they did way back in May when were around $38.
Link: Facebook Drops On Advertising Sales At BMO Growth Concern (Bloomberg)Tags: Actions, Facebook advertising, Fall, stock exchange