Facebook investors have lost billions as shares in the company tumbled again, dropping below the $20 mark for the fist time since since it floated at $38 in May.
The company has yet to convince markets that it has long term earnings growth potential, and revelations that 83 million of its 955 million user accounts were fake made matters worse.
Added to a string of top executives leaving the company, there is serious investor concern over the social network’s future, with shares hitting a low of $19.82 before bouncing back slightly.
“The sentiment on this thing is so negative,” said Topeka Capital Markets analyst Victor Anthony. “I think this thing may continue to tick down until you see some sort of meaningful catalyst, which unfortunately may not show until third-quarter earnings.”
The sentiment on this thing is so negative
The slide follows the departure earlier in the week of Facebook’s director of platform partnerships, Ethan Beard, and the director of strategic partnership marketing, Katie Mitic.
The company, which floated at $100bn back in May, has since seen 47% sliced off its share price.
The company also warned in a filing with the Securities and Exchange Commission that any decrease in users could have a negative impact on future earnings, especially if members moved to other platforms.
“A decrease in user retention, growth, or engagement could render Facebook less attractive to developers and advertisers, which may have a material and adverse impact on our revenue, business, financial condition, and results of operations,” the company said.
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