webstationlogos3 KHTK-sports-1140_FINAL-social_125x35b

Tech

Barron’s Slams Facebook, Stock Falls

View Comments
File photo of a person using Facebook. (Photo by TED ALJIBE/AFP/Getty Images)

File photo of a person using Facebook. (Photo by TED ALJIBE/AFP/Getty Images)

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up

NEW YORK (AP) — Facebook’s stock is 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 says Facebook’s stock is worth $15, well below its current price —even with Monday’s drop.

Copyright 2012 The Associated Press.

View Comments
blog comments powered by Disqus