“Facebook has taken criticism for initially pricing its shares at 100 times the company’s per-share earnings. With the decline in the share price, this key measure of valuation has since retreated to about 40 times earnings” reads a statement post on TheGlobe which is “reasonable enough to attract investors who still believe in the company’s growth potential.”
“Recognizing that you had a stock that was already under pressure and you had incremental shares going to the market, on a relative basis [the decline] was a little better than some may have feared,” said Tom Forte, an analyst at Telsey Advisory Group.
According to a post from the Santa Cruz Sentinel “Facebook’s stock price hit a ‘record low’ Thursday, sinking to nearly half its IPO price, as insiders became eligible to sell the first batch of shares that had been “locked up” by trading restrictions since the company’s controversial stock market debut.”
Facebook has been labelled as a “good company” but a “terrible stock” according to Trip Chowdhry of Global Equities Research.