Facebook Stock Hits New Low, Keeps Sinking

Paul Lilly

Facebook's much anticipated initial public offering (IPO) turned out to be a pretty big disappointment, and things have only gotten worse since then. The social network's share price fell to $20.88 by the end of Wednesday's trading session, which is 45 percent below its IPO price of $38 and a new low price, dipping below the previous low of $21.61, which occurred a day earlier.

The falling stock price is in reaction to Facebook's quarterly earnings report last week. Investors weren't all that keen on the results, even though revenue was a third higher than a year prior. Analysts and investors are skeptical of Facebook's ability to grow its business long-term, and the market is reacting to those concerns.

As of this writing, Facebook's stock has dipped another 2.71 percent to $20.32. Equally concerning to the falling share price is the loss of top level talent, as noted by AllThingsD . It's hard enough to right a ship that appears to be sinking, but even tougher when those manning the ship start jumping overboard.

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