Facebook’s shares plunged a further 12 per cent on Friday, closing trading at 23.70 dollars as investors worried the company would not be able to meet the earnings growth needed to justify its lofty stock price.
The share plunge followed the company’s first earnings report as a public company, in which it reported a loss of 157 million dollars on revenue of 1.18 billion dollars.
The company’s shares were valued at 38 dollars when it went public in May at a record valuation of 104 billion dollars. It managed to close at a higher price only after the first day of trading and has now lost 34 billion in market cap, or 38 per cent of its value.
According to Bloomberg News on Friday no other company had ever lost so much value so quickly.