The rise- and more importantly the fall of Facebook’s share price continues.
The finances of Mark Zuckerberg- the founder of Facebook Inc have undergone a bit of a rollercoaster ride since his wedding on Saturday.
After the IPO floatation at the launch price of $38 per share, the share price dropped yesterday to $34 per share and is now fluctuating around the $32 per share mark.
After the triumphalist scenes at Facebook’s headquarters when it floated last week, the company probably deserves the outpouring of derision that accompanied its share price plunges, which currently have wiped $17 billion off the value of the company.
As he retained around 45% of the shareholding- this represents a stunning $7.65 billion (£4.78 billion) loss.
The swings in Facebook’s share price do not reflect minor differences of view over the right multiple an investor should pay for its near-term profits; it is a tussle between the optimists and the pessimists, and currently the latter havetheir grip on trading.
How much is Facebook worth?
It’s not a question the share price can answer, and the urge to keep refreshing that page in order to see its price gyrating is definitely to be resisted. Especially as the Financial Times suggested before the floatation that it would take five years to work out Facebook’s true worth.