Facebook Shares Drop After Barron’s Article Dubs Stock ‘Still Too Pricey’
MENLO PARK (CBS/AP) — Facebook’s stock was down sharply after an article in the financial magazine Barron’s said it is “still too pricey” despite a sharp decline since its initial public offering.
Facebook’s stock has plunged since its May IPO. But Andrew Bary at Barron’s says the stock trades at high multiples of both sales and earnings. And he says there’s growing uncertainty about the future of its business.
Face book is not commenting.
The Menlo Park, Calif.-based company’s stock fell $2.20, or 9.6 percent, to $20.66 in afternoon trading. The company went public on May 18 at a share price of $38, which it has not hit since.
Bary said Facebook’s stock is worth $15, well below its current price—even with Monday’s drop.
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