Facebook Stock Performance: Mark Zuckerberg and Wall Street are of different frames of mind

Facebook is the thick of losing money on the Street. The company went public in May, other than the starting day, when its price went up to as much as $41 per share, it has not lifted up from the ground. And what followed the sloppy start was a slew of court cases against the company and its major underwriters.

In recent events, Facebook got another hit in the share price, now the stock is almost $20 a pop. The loss in stock prices does not seem to bother CEO Mark Zuckerberg, who still thinks that the torrent can be changed course by improving the product. He has often said that the Street can wait for a while more until Facebook designs something to generate profits.

That is the main conundrum at the Paulo Alto-based company that it has the zeal to stay in the business but not the brains to survive the stock market. Investors want profits and that is hard to come by for the social network that was built on the sole purpose of interaction with loved ones for free.

Facebook has tried a number of things in the past to lure big bucks to the company but nothing has brought any substantial profits to the company. In the latest report submitted by Facebook to the Security and Exchange Commission (SEC), more than 20 percent of the subscribers use Facebook via mobile.

The increasing use of the network via phones does not bode well for Facebook and its efforts to generate sums in profits through advertisements on the browser-based website.

On the other hand, the pre-IPO purchase of Instagram is still to show any results or even the reason why Zuck paid $1 Billion for it.

Of course, Zuck himself is in the jam with dropping stock price. His stake now sits at around $10.1 billion which is a 37 percent loss since the IPO. The piles up to some $4.7 billion since the company went public.

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Posted by Usman Khalid on Aug 21 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.