Facebook Stock Falls Below $30

Social network sees 20% plunge since IPO
By Matt Cantor,  Newser User
Posted May 29, 2012 11:54 AM CDT
In this May 16, 2012 photo, the Facebook logo is displayed on an iPad in Philadelphia.   (AP Photo/Matt Rourke)

(Newser) – Facebook shares continue to plummet: They've now dropped more than 20% from their $38 IPO price, falling below $30 today to their lowest point yet, reports Reuters. At about 12:45pm EDT they were trading at $29.44. But among tech stocks, $30 per share still gives it a comparatively "generous" valuation, notes Dan Gallagher at MarketWatch: The site is trading at about 55 times its estimated earnings for this fiscal year. Google, on the other hand, trades at about 14 times its estimated earnings, and Apple, IBM, and Microsoft are in the same ballpark. But he notes that higher valuations seem more common among social sites: Groupon trades at some 64 times its estimated earnings, while LinkedIn is trading at a hefty 145 times its estimated earnings. (Read more Facebook stories.)

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