Barron's: Facebook shares could fall below IPO price

1:00 PM Barrons, below, could, Facebook, Price, Shares No Comments

Shares of, social media company Facebook Inc. could fall below the IPO price of $38, Barron's wrote in its may issue.

Facebook saw their stocks rise a little 0.6 per cent to $38.23 on Friday in the first day of trade.

The camp remained on the $38 IPO price, supported in the market by offering underwriters. But Barron said the "big question" this week will be whether they continue to do.

Its shares still look expensive as compared with rivals such as Google Inc, and all the more so given Facebook's challenges in the creation of revenue from mobile users, wrote that financial per week.

Facebook shares face also the view to pressure from heavy selling shares by the end of 2012, when the early and inward investors to get rid of the shares before a possible increase in the capital gains tax, according to Barron's.

Below, Andrew Rachleff Wealthfront President & CEO, and David Callahan demos, discuss Facebook's effects on the economy on CNBC.

Copyright 2011 Thomson Reuters.