Zuckerberg loses $2bn as Facebook share prices drop
Mark Zuckerberg today experienced first hand the trials and tribulations of the stock market as he watched nearly $2bn be wiped from his net worth
Facebook saw its share price plummet today suggesting that Fridays initial excitement has clearly worn off. The share price fell from $38 to just over $34 which may not sound like much but was enough to cleave off $2bn from Mark Zuckerbergs share.
According to the Guardian, analysts have suggested this is actually quite normal, with most companies of that size levelling out at around $16-$24 a share.
While this would still make Facebook worth anything up to $85bn it's still a long way from the original estimation which put the company at $104bn.
Facebook officially launched its long-awaited IPO on Friday morning with shares in the company being sold for $38 each, that's about £24 per piece of social networking royalty, in proper money.
The offering on the Nasdaq index in the United States will raise $16 billion in cash right out of the gate for Facebook and will value the company at an incredible $104 billion.
The floatation has made Facebook founder and CEO an instant billionaire, with his 30 million shares up for grabs expected to bring in $1.1 billion.
Facebook's launch was by far the biggest IPO of any internet based company ever. Even the mighty Google only (yeah, we mean only in the relative sense) fetched in $1.67bn for the search giant.
The involvement of heavy-hitting shareholders, who Zuckerberg and his army of twentisomething creatives now have to answer to, could change the face of the social network, as they seek a return on their investments.
Adverts will definitely invade the mobile space, while there are fears that the personal data of the company's 900 million active users will be further exploited through targeting campaigns.