Facebooks share value has fallen from a peak at the IPO a few months ago from $45 to yesterdays $17:55. That sounds shocking but actually the value of the shares was far too high at the outset; it was based on a gearing of X6. So with earnings of $3+ Billion the IPO price should have been $18 a share.
The company has been struggling with rasing advertising revenue which is set to drop as corporations realise that social netwoks don't actually manage to sell much and are being percieved as a place for brand name building called secondary advertising. Their is also a lot of pressure from the mobile market where Facebook have so far failed to make much of an impression; this suggests that the next publication of the company accounts will show a fall in advertising revenue as internet surfing habits change from being centred on P.C.'s.
The price could easily keep falling to a range of $3-$6 in the coming year.
