Tech Bubble, Anyone? Facebook Shares Plunge 12% on Day Two

by Knowlton Thomas | Culture

Facebook's IPO on Friday was the largest in the history of the world's technology sector. The social network raised a staggering $12 billion, valuing the company at well over $100 billion. But after peaking more than 10% above its share price, at just over $42, the stock fell back to its debut price of $38.

On day two, the stock is deep into the red. Bleeding sells like crazy, the share price of FB has plunged a steep 12% to less than $34, sinking the company's valuation to barely $90 billion.

Critics are now questioning whether Facebook played up the hype to overprice the stock in order to raise the maximum capital possible—effectively scamming retail investors of their money—while others suggest this is the truest mark yet of the next great tech bubble. Either way, it's yet another tech IPO that's fizzled out quickly after debuting on the stock market.

Photo: USA Today

Toronto, Ontario, Canada

Facebook's mission is to give people the power to share and make the world more open and connected. Millions of people use Facebook everyday to keep up with friends, upload an unlimited number of photos, share links and videos, and learn more about the people they meet. more

blog comments powered by Disqus

Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes and author of Tempest Bound. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys hiking, tennis, and martial arts. more

Who's Hiring

Recent Comments

Powered by Disqus