Facebook Stock Expected to Bottom at $22.00
Facebook (Ticker Symbol: FB) shares continue their downward spiral, with the stock down nearly 37% from its all time high as questions about its earnings growth and other issues persist.
A new survey of Internet users found that many are more likely to click on and share a company’s branded content that it can post for free on Facebook rather than click on any ads on the site.
The study by search marketing company Greenlight found that 44% of the worldwide Internet users it surveyed in January had not clicked on ads or sponsored listings on Facebook and an additional 31% said they rarely click any Facebook ads. Facebook gets most of its revenue from ads.
The company’s revenue growth has been declining. It reported 45% year-over-year growth in Q1, down from 55% in Q4 2011 and 104% in Q3. General Motors (Ticker Symbol: GM), one of its biggest advertisers, recently said it would pull its paid ads because it had found them ineffective, though it will continue to use Facebook, for free, in its marketing.
Facebook also is trying to figure out how best to adapt its ad program to mobile devices, where a growing number of its 901 million subscribers are accessing the service.
“How much money did you lose in the Facebook IPO?”
A frightening trend among international investors — They’re betting against Facebook. And they’re betting big. Professional “shorts” are so certain Facebook will fall further that they’re willing to pay almost any price for a chance to bet against the stock — the shares could fall as low as $22.00 per share.