Facebook Stock Price Continues to Tumble

Saturday August 4, 2012

By Tiffany Black

After a rough IPO, it seemed like the Facebook stock price was going to balance out to it's original starting IPO price. But on Thursday, it hit a new low of $20.04, a 47% decrease from it's original starting IPO price of $38. The Facebook stock has been on a roller coaster ride of ups and downs from the beginning but now it's becoming a question of how low will the Facebook stock price go?

Why is the dominant social media powerhouse's stock struggling? Some point to the fact that Facebook's user growth has slowed. Facebook stands at over 911 million users but it's not likely it will hit 1 billion users by the end of the year. Also there is lack of confidence in Facebook's mobile advertising strategy as more than half of its users access Facebook through mobile devices. The concerns about Facebook's growth and revenue is clearly reflected in the highs and lows of it's stock price. What will Facebook do to regain investor confidence? We can only wait and watch.

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