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Conservative Daily News - The best news, analysis and opinion articles written by a collection of citizen journalists. Covering a range of important topics in blogs, op-ed, and news posts, these upstanding patriots are bringing back American exceptionalism with every entry..

The Virtual World: Facebook Crashes

UPDATE: Facebook stock plunges!

Today, as the markets came to a close, Facebook, took another slide.  The IPO’s share fell to around 30 dollars today at the close of the market.  With underwriters bailing and consumers following suit, its no wonder that the stock itself would lose value.  If the trend continues, it could be the end of the IPO on the open market.  During the course of the trading day, the new IPO traded nearly 28 million shares.  Even with all the trading of Facebook stock today, the IPO still lost value.

The forecast for Facebook was higher than what is now expected.  Another reason for the decline in revenue for Facebook and possibly a reason for underwriters leaving the IPO is due to the report that Facebook filed with the Security Exchange Commission(SEC), in that report, it stated one reason for a cause of concern in the future growth of the company;

“We have been subject to regulatory investigations and settlements and we expect to continue to be subject to such proceedings in the future, which could cause us to incur substantial costs or require us to change our business practices in a manner materially adverse to our business

With the increase of Facebook users switching from desktops or laptops to mobile devices, that do not display as many ads, if any at all.  Maybe also be a concern for company growth, considering advertising is a huge revenue driver for the company.  Some of the underwriters being, Morgan Stanley who is the lead underwriter. With rest of the Facebook investors, who Goldman Sachs, JP Morgan, Barclays Capital, Bank of America Merrill Lynch and Allen & Company and Mark Zuckerberg, all who have taken a major lose in the company since the first day of trading last Friday.

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