If there was an unlike sign against the financial magazine, Barron’s, Facebook Inc (NASDAQ:FB)’s Mark Zuckerberg would be using it right now. The social networking sight saw a drastic decline in stocks after the magazine called the stock prices “still too pricey” even after the sharp decline which the prices saw, after the initial opening price.
The stock prices for Facebook have gone down since the May Initial Public Opening (IPO). The scenario might be slightly depressing for the site at the moment. Facebook has seen drastic growth, through Display advertisements, though. Taking over the top-most position from Yahoo, Facebook made phenomenal profits from the display adverts, which are mostly in the form of pictures and videos. However, Google is all set out to take away that position as well.
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Coming back to stocks, however, Andrew Bary, who is a part of the team at Barron’s, stated that the stock still trades at high multiples. And this applies to both sales as well as earnings. He went on to comment further, that the future of such a business stood on shaky grounds.
The stock prices look grim for Facebook, currently. However, the representatives who are handling the public relations for the site, refused to comment upon what was going on with the stocks. There has been no reaction by the people from Facebook after these turn of events.
Facebook might have taken a hit right now, but there is hope for the prices to go up, and the exchange rates to normalize soon. The Menlo Park suffered a fall in stocks as well, with the price going down to $20.66 which saw about a two dollar decline.
Facebook has a chance to bounce back up soon enough, what with the stocks constantly fluctuating with every little turn of event. There is hope for the company to crawl out of the new low which it has hit, with respect to stocks.