Poor Mark Zuckerberg just can’t seem to catch a break. He creates a website and manages to monetize it, good for him. He then gets a couple of million users and increases the monetization, again well done. The service remains free and easy to use, and everyone uses it. Then they went ahead and went public.
Initially opening at a stock price of $38 dollars, a rather respectable IPO, things started to go downhill from there. Stocks we’re apparently falsely sold, certain members of the board were privy to information others weren’t and then Zuckerberg’s sister leaves to go and work for Google. All in all, it’s not been a great time for Zuckerberg since Facebook’s IPO.
Bloomberg reports that as of Friday evening, Facebook shares dropped to a woeful $19.05 / £12.13 after restrictions on inside investors selling shares were lifted on Thursday, and more restrictions are expected to be lifted in the coming months.
Since Facebook’s initial IPO in May, the value of the social media super-site has fallen by 50%, including the 4.1% fall on Friday.
Zuckerberg, who never seems to be phased by such events will personally have lost $600m / £382m from his personal fortune due to the dip in share prices, but is still worth approximately $10 billion, which is probably why he isn’t too fussed.
At the end of the day, Facebook is not a physical, tangible thing, and whilst its easy to get excited about the money it’s capable of making, it’s also easy to think, what else is there it can monetize other than mobile ad’s, which are already being looked into. Facebook is something that could easily fall from its lofty perch ala’ MySpace if something better comes along, and that no doubt concerns a lot of investors.