More Bad News Piles Up for Facebook - Business - The Atlantic Wire - 0 views
-
nearly half of the respondents now have less favorable opinion of Facebook than they used to simply because the IPO has been such a disappointment. Even thought the declining share price and frustrating technical troubles had zero affect on most Americans (or even the average investor) simply giving off the impression of a bumbling, unpopular company can change the customer's perception of it
-
Part of the reason the stock is struggling is because the public offering has exposed some of the cracks in the armor of Facebook's business model. Ads are awkward and under-performing and revenue is not growing at the rate it once was, particularly when matched against the site gigantic user base. (The site makes a little over a dollar per user, each quarter.) That makes consumers less interested in the site, which depresses the ad market even more, which drives down share prices, which turns off consumers... and so on. The stock opens on Tuesday at $26.90, still well below its IPO price of $38.