Reuters: Global Markets: Facebook stock slides to a record low, share-deluge looms

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Facebook stock slides to a record low, share-deluge looms Jul 31st 2012, 17:17 Tweet Share this Email Print Related News Facebook's value slides by $10 billion; outlook unclear Fri, Jul 27 2012 Facebook revenue growth skids, shares plunge Fri, Jul 27 2012 Facebook shares pressured by Zynga ahead of results Thu, Jul 26 2012 Zynga shares slump on fading "Farmville" fortunes Thu, Jul 26 2012 Zynga takes axe to outlook, spooks Facebook investors Wed, Jul 25 2012 Analysis & Opinion Facebook costs UBS some of its new friends How the tech-stock valuation curve inverted Related Topics Hot Stocks » Asian Markets » Facebook » The Facebook logo is seen on a screen inside at the Nasdaq Marketsite in New York May 18, 2012. Credit: Reuters/Shannon Stapleton By Gerry Shih SAN FRANCISCO | Tue Jul 31, 2012 1:17pm EDT SAN FRANCISCO (Reuters) - Facebook Inc's shares dived 6 percent to another record low on Tuesday, sliding for the third straight day since a lackluster quarterly report showed decelerating user growth. Investors have punished the stock of the No. 1 social network and other consumer-focused Internet companies such as Zynga Inc, questioning their ability to sustain growth and maintain lofty valuations. Last week, Facebook reported results but offered no outlook or forecast for the year, spooking investors who sought reassurance about growth in 2012. Wall Street is also bracing for a potential deluge of millions of shares after August 16, when a post-IPO lockup period on employee share sales expires. Despite having shed 40 percent of its value since a May 18 IPO, Facebook still trades at about 47 times forward earnings, versus Google Inc's 15 times. On Tuesday, Bernstein Research analyst Carlos Kirjner upgraded Facebook to market perform, but estimated the lockup's expiry could unleash up to 211 million shares. He valued Facebook's core display business at just $19 a share. But he said the company's potential around its innovative social graph was worth a $4 premium. Bernstein set Facebook's 12-month target price at $23. The size of the current float could be nearly tripled by November, as more and more employees begin to sell, Kirjner warned. Facebook stock was off 5.8 percent at $21.81 in afternoon trade. (Reporting By Gerry Shih; Editing by Alden Bentley) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) Let's delete all social media and re-embrace what's left of "real time." Jul 31, 2012 1:43pm EDT  --  Report as abuse See All Comments » Add Your Comment

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