(Credit: Sarah Tews/CNET)
Facebook briefly hit another low today before finally rebounding.
Facebook's shares are up 0.7 percent to $29.05, up slightly from an earlier low of $28.25. Despite the slight gain, the stock is down nearly a quarter from its offering price of $38.
It's been a tumultuous few days for Facebook's stock and any shareholders who were stuck with the stock at its offering price. Its first full week of trading ranked it as the worst performing IPO in a decade, and the stock fell below $30 for the first time yesterday.
The declines have largely stemmed from concerns that Facebook doesn't quite have a grasp around how it will fully make money off of its massive base of users, and the realization that its initial public offering valued the company at too rich a price, a revelation that is having a ripple effect on other technology companies.
On the heels of last week's controversy over whether Facebook disclosed financial information to select individuals ahead of the broader market were rumors that Facebook had hired engineers in preparation of building its own Facebook phones, a notion that turned many investors off. The company was also rumored to have been interested inpurchasing browser company Opera.
Facebook's current market capitalization values the company at about $63 billion, down from its market value of $104 billion when it first went public. In other words, it has lost more than two Yahoos worth of value (the online company has a market cap of $18.7 billion) in less than two weeks.
The stock decline has also meant the declining fortunes of photo app Instagram, which agreed to be purchased in a deal largely consisting of stock. The value of the deal dropped from $1.
(courtesy:cnet.com)
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