Facebook Stock Continues to Plummet Despite Long Holiday Weekend
NEW YORK – To the dismay of many hopeful investors, stock in the world’s most popular social media marketing venture, Facebook, continues to plummet.
After a Memorial Day Weekend pause, Facebook stock has reached a new low, trading at just under $29 a share on Tuesday, nearly a $10 loss since it opened up two weeks ago.
The legal Internet marketing company sold over 420 million shares at $38 apiece, but despite its rocky start, many investors backed the stock, hoping it would soon spike up after a possible purchase was suggested.
Facebook was rumored to show interest in purchasing Opera, an independent Norwegian company that offers a popular mobile Web browser. However, analysts said the purchase would cost Facebook too much.
Norway’s DNB bank, reported the online marketing company would have to pay around $1 to 1.2 billion for the acquisition. And even if Facebook made a bid for the company, it would likely face competition from other technology companies like Google, which already has partnerships with Opera.
Luckily for Facebook, Opera may not be its only investment opportunity. Rumor has it that the company is working on acquiring Face.com, an Israeli company specializing in facial-recognition technology.
For now, some experts believe the stock will continue to fall. Yet, with a median price target on the stock at $42, nearly 40% higher than the current stock price, some analysts are forecasting the price will grow over the next three to five years by roughly 36% a year.
This is a lot of pressure to be place on a new stock, and whether Facebook will live up to optimistic investor expectations is something only time will tell. For now, many analysts suggest waiting for the stock to level off before taking a gamble on it.