Barron’s Slams Facebook, Stock Falls

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.

Comments

Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Sacramento

Get Our App
Get The CBS Sacramento Weather AppGet the latest radar, CBS13 AppCasts and hour-by-hour forecasts. You can also send your weather pics.

Listen Live