Everyone uses Facebook, but some are feeling that the stock was severely overpriced. The company is struggling in ways that many did not expect, not because it’s not making money, but because it’s not growing fast enough. Investors are running the other direction right now and there is nothing that Mark Zuckerberg and his team can do about it. Do you use Facebook every day? Well, be prepared for ads being put in your face 24/7 as this company finds ways to make more money.
Facebook was once flying high, but not right now. The company’s stock took another nosedive today after earnings reports showed that the company’s growth was only a fraction of what analysts had expected. The stock was down 14% in early trading, dropping to $22.98. This is Facebook’s first earnings report as a publicly traded company and hasn’t gone over for them very well.
Most surprising was that in the earnings report, Facebook actually exceeded expectations that analysts had a week ago. The problem for the company is that there had been so much bad news before this report that the stock was still coming out to be worth less than what it was worth even last week.