Community Corner

Facebook Stock Falls on Second Day of Trading

So where are Facebook's friends now?

If you didn't rush to buy Facebook stock on Friday, you probably made a good decision.

After its IPO of $38.00, the Menlo-Calif. based company's stocks prices have taken a tumble falling $3.97 to $34.26 in late afternoon trading. Earlier in the day the stock had dropped as low as $33.

That doesn't sound like much, but it translates to a loss of "nearly $10 billion of its market value, and is now worth around $96 billion, about $2 billion below Amazon.com Inc.," according to an article in the Boston Globe.

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"There must have been some sober second thoughts about this," said Brian Wieser, an analyst at Pivotal Research Group on the drop in share price. The analyst thinks the $38 per share was too expensive given Facebook's unproven advertising model.

-- What do you think? Is Facebook's stock overpriced? Is the social media giant past its prime and no longer the influence it once was?

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