Facebook Price Continues Its Fall

Sadly after the first couple of weeks since its launch, the Facebook share price has continued to fall from its original price of $38. Specifically Facebook Inc stock has fallen by around 26% to around $28.

Despite this, there are still some fund managers keen to see share values decrease by more.

 Because of both a technical glitch coupled with a communications breakdown, directly effected the official launch on  May 18,leaving market watchers with the belief that the Facebook stock value had been artificially inflated for the initial offer and subsequently contributed directly to its subsequent drop in the two weeks since.

The key concern about Facebook's true value revolves around Facebook's ability to consistently generate revenues from advertising its advertising tolls.  

Under a fee-based structure is a possible evolution for Facebook which would typically ask its vendor clients to pay for each user that goes to their site from Facebook, along the lines of Google Adwords.

This is a model that has proven very successful for Google and may well be a valuable approach for Microsoft too.

Suffice to say that old adage that investors should never put all their eggs in the one basket, has yet again been proven to be right. At least for now.

Until next time,

Good marketing and good luck.

Daniele.