Reasons For Drop In Facebook Stock Not All Negative
You see, I bought Facebook stock when it was $32 per share. When I biked to the investment bank to buy the stock, I was convinced I was getting a great deal and would soon be a millionaire. Huddled behind my computer, googling “FB” to determine the share price, I watched it red, red, red, day after day, as the price dropped as low as $17.55 last week.
I started cutting back on how much I was spending because it seemed I would lose all the money Iʼd invested. Things were worsened when Wall Street Journal Rupert Murdoch cronies attempting to defend their print empire declared, “Facebook Investors Cash Out” in a “Facebook Faceplant.”
Why the epic drop, when users kept scrolling down their news feeds?
For one thing, the market was flooded with shares (approximately 65 million) when the social network giant went public. Secondly, the companyʼs user growth is shrinking, as is the time people spend on the site. For a cherry on top of a woe sundae, nine percent of user profiles are bogus; so that “hot chick” befriending you from Siberia - probably part of the fake.
But some of Zuckʼs babyʼs weaknesses are also part of its muscle. The fact that so many people own a portion of the company give it clout and stability, so for some users who have more than eight years worth of personal photos, cat pictures and statuses entrenched on the software, they also have money invested in its success.
Things are looking promising, according to fellow investor and Esquire author Ken Kurson. To him, Facebook is a company with a hot body and ugly face. Unpacking the analogy, there are pluses and minuses to the corp. The hot body: Facebook has a huge user base of 900 million, and this could mushroom when it crosses the Pacific and starts owning the lives of the Chinese. Forbes thinks Chinaʼs acceptance of the company could lead to almost $2 billion in additional revenue. The ugly face: our favorite stock was overvalued and dropped to below half of its initial estimated worth. This meant catastrophic losses for suckers, like me, who invested when we thought weʼd only see gains.
Another negative - maybe a side note: isnʼt the best way to communicate with someone not behind a computer screen by means of a psuedo chat box, but rather in person, fleshing things out, oggling at a person's real beauty rather than at dots on a computer screen? Many students are frustrated with how much time weʼre spending behind computers, and they want a change. Note to Zuck and the talent - which has also been fleeing in droves (see Ethan Beard, Bret Taylor) - start bringing people together. Weʼre tired of being corny minions pounding our fingertips in search of some fleeting romance we know would be better skin-to-skin.
But, for now, share this on your profile.