Monday, September 24, 2012

Facebook's stock falls as Zuckerberg effect wears off


(Credit: Sarah Tew)

Looks like the Facebook pessimism has returned.


Shares of Facebook, which have been on a tear since CEO Mark Zuckerberg sought to calm Wall Street during an in an interview at TechCrunch Disrupt less than two weeks ago, are getting slammed today. The stock was down 10 percent in midday trading, to just over $20.


Why the sudden change of heart? The broader market is taking a hit, which of course doesn't help. But the kick in the gut came from Barron's, which over the weekend published a cover story concluding that Facebook's shares -- which in the last week have been trading in the low 20s -- should trade at perhaps $15. Ouch!


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