Shares of Facebook dropped and closed on a new low on Wednesday. It dropped nearly 2.3 percent than the previous day and closed at $28.19. It has dropped lower than the previous day for the third consecutive day.
Today through it has performed quite well (comparing to previous record) it has increased to $29.60. That is solid 5% increase.
The major reason being that investors believe that Facebook stocks are over-valued. As a matter of fact that is the truth. Facebook stocks are indeed over-valued, the highest for any company.
The over-valuation of Facebook has been back-firing on it’s stocks and it’s legendary IPO debut.