Friday, 21 June 2013
Facebook Shares Drop 37% Since IPO
Facebook founder Mark Zuckerberg has come under fire from shareholders furious about the slumping price of its stock-which has yet to climb above its price at the company's initial public offering. Despite facebook's growth to 1.1 billion users- more than any other social networking site in the world - Zuckerberg has presided over a 37% decline in share price since the company debuted on wall street at $38 a share last year. Facebook stock closed $24.03 a share on tuesday, down 1.2%.The 29 year old facebook chief executive tried to reassure his angry shareholders by saying nothing 'has made me really think that the fundamental strategy is wrong or that what we're building isn't valuable'. Mobile ads account for 30% of facebook's ad revenue.But revenue growth remains sharply below that of two years ago, and the popularity of new mobile apps aimed at younger users has raised concerns that facebook may risk losing its grip on consumers.None of the trends that we see right now seem like they should get in the way of our success in any meaningful way , he said. He noted at another point during the event that the amount of 'likes' and comments that users post on the service 'has gone up per person about 50%' during the past year.