The pigeons flapping around the world's dumbest IPO are still coming home to roost. We scratch another notch in the wooden stave that is the sophisticated TelecomTV Facebook Share Tracker device. I.D Scales reports.
May 18, 2012. IPO Price $38.00
May 22, 2012. Price 34.03. The shares fell by 11.3 per cent as banks and brokers withdrew the support they had reluctantly provided on launch day.
June 6, 2012. Price: $ 25.87. Facebook's shareprice is now 32 per cent below that initial public offering and the slide is steady.
July 27, 2012. Price $ 23.94.
Facebook shares are down another 11 per cent to a record low after the company announced its first results since its floatation in May.
August 3, 2012 Price $19.82. Facebook shares hit an all-time low when the company reveals that around 83 million of the site’s 995m million profiles are fake.
Now anyone might have told the market about the fake accounts at any time - we've all seen M.Mouse along with people's pets regularly register themselves. But it seemed to come as news to Facebook investors who read a financial disclosure the company made to the US Securities and Exchange Commission. In the document Facebook fessed up that approx 4.8 per cent of its 995 million faces were fake and the jittery stock market rewarded it with another sell-off.
Now we've said some very vitriolic things about this IPO and with hindsight we'd like to say that we don't regret a single word. But here's the problem: even the most jaundiced observer must admit that Facebook is probably worth something... but what? What price do you think the stock will stablise at (if at all)? Put your estimate in 'comments' below and we'll keep updating this story as the price continues to drop (or not).
Remember, the value of stocks and shares can actually go up as well as down.
please sign in to rate this article