Karen Bleier / AFP - AFP
An Apple iPhone shows the Facebook app splash screen on a PC screen.
Starting with its share price hit new lows daily, professional investors and market experts voice concern about the prospects for Facebook shares.
The number 1 social network share sank even lower Wednesday as nervous investors worried about the long term prospects of the company.
Facebook share decreased by 2.3 percent to a new closing low $28.19 after dropping nearly 10 percent Tuesday. The stock price, which has fallen in five of the eight days of public trade liked 26 percent now because public went to $38 per share may 17.
Facebook has seen fall the value of his stake in the company over $5 billion from the value of the IPO to $14.2 billion in current founder and CEO Mark Zuckerberg. Zuckerberg sold value of shares more than $1 billion to the IPO also according to documents filed by the companies.
The decline of Zuckerberg knocked off a short held place on Bloomberg running index 40 richest person in the world.
The offer, which was clouded by the trade in breakdowns and caused several lawsuits, already has one of the worst complete a large company, according to data Tracker Dealogic.
Anant Sundaram, a valuation expert at the Dartmouth Tuck School of business, said that he has Facebook review is concerned, because he thinks that the company difficulties his new users derive revenue, overseas and will be suspended from his growing presence on mobile devices.
About 20 percent is the current user of the company in the United States and Canada, and half of the users access the site with mobile devices, which directs Facebook of much less advertising revenue than through a desktop PC, he said. The mobile arena currently dominated Facebook rivals Google and Apple.
What's more, where Facebook at schnellsten--in Europe and Asia wachst-- markets companies less revenue. Facebook in $3 per user in the United States and Canada, but only $1.50 in Europe and Asia only 50 cent brings established Sundaram.
"You have a situation where U.S.-based PC users are for many of your revenue, but if you where the fastest, which is growing are where you make money with your user base problems accounting" Sundaram said.
Facebook's initial public offering of the company $ 100 billion geschatzt-- a number that says Sundaram 'problematic' sales by 30 to 35% annually for the next 10 years is because it would grow the company implies. Sundaram estimate that is a rating of 66 billion dollar rational for Facebook.
"This evaluation for the company that we would consider a share price, which 20 closer to the low to mid $s $40 per share," said Sundaram, which emphasises that he does not make to buy stock recommendations.
"The logic for this is I think the growth rate from 901 million users will be flat out," he said.
A course in the middle of $20 is a region where buyers and sellers of Facebook options, which began trading Tuesday for this summer are predictions.
According to the Wall Street Journal, some traders would use "put" options to set that Facebook share to $25 per share fall in mid-July.
Analysts have a wide range of price targets for Facebook's consisted of $30 to point to as high as $65, according to the newspaper.
Walter price, Portfolio Manager with RCM capital management, said CNBC Wednesday, that he thinks that the fair value for Facebook shares is about $30, added that he would buy it at this level.
He however notes that in addition to the challenge of money from mobile devices to Facebook-advertising for the majority of the revenue is dependent - it difficult can to attract and maintain large advertisers.
"Facebook is a transition in their business model," price told Reuters Insider. "It was easy to get the first 5 to 10 percent to try an advertising budget on Facebook and some brand advertising, but you have TV displace always the next 5 to 10 percent, and that is very difficult to do much."
He added "Facebook still not the metrics to prove to prove profitability and growth and awareness of their platform".
Days before Facebook's debut, General Motors announced it attracted unproven track record and concern about the lack of paid advertising on the social Web, relying on Facebook prove that advertising on Facebook is strongly back.
Facebook the next steps in the growing mobile arena can give some investors pause.
S & P Capital IQ equity analyst Scott Kessler said on Tuesday, that he has a price target of $30 for Facebook in the next 12 months relying on Facebook to acquire still emerging strategy to income in the mobile space.
S & P pointed to reports this week that searches Facebook, to both Opera buy software browser company and build a Smartphone, pointing out that a hard time making money have the company without proprietary mobile software and hardware.
"We think is not proactively at an interesting time [Facebook] more on mobile phones before their competitive positioning may affect but also aggressive affect their profitability can", Kessler said.
Reuters contributed to this report.
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