Since the long occurring downturn, the most popular social networking site, Facebook fell to its lowest point by 20 per cent since its maximum print since the IPO on Friday. And it’s not just the famous social network site that severely took a major strike, after markets set their gaze on the social networking sites, markets then eventually made their way in wreaking difficulties on the publicly prominent Internet 2.0 community with the major players such as Zynga, Yelp and LinkedIn all taking severe hits from the market. The ever famous Farmville (a major revenue streaming online game in Facebook) and other similar online games created by Zynga helplessly saw its price tumbling down the drain on a rather frustrating turn of events on its first day of trading with barely enough resources to stay on track. Same as with GSVC which wasn’t spared with the markets stiff operations similarly held the same circumstance dropping with well over 10 per cent.
With the social networking site implementing its much awaited IPO on last week’s Thursday, its pricing worth in shares reached $38 that summed up to $16bn which catapulted Facebook at a whopping $104bn. Even with the IPO’s intensity, the shares that were bought went flat on their initial day of trading with just $42 at its opening which later fell below its initial opening print for the remainder of the session. On the other hand, there were several major commentators who proposed their justifications for the opening day for lack-lustre following the yesterday’s disturbance. Evidently, newsfeed on many Facebook accounts should have shown the reports in more detail with news and comments regarding diverse difficulties in giving significance of free website and its effects on uncertain advertisement profit to a highly expanded resulting market.
For those itching to be in the excitement of the Facebook float regardless for the length of time people have been hooked with it. People then need to ask why they should trade. Basically, either way people are heading onto, they should essentially know and plan their trade, when to buy, when to sell and finally when to set stop losses. When people get caught up in all the hype and excitement it’s just common sense not to get all frenzied and caught up in the wrong side of the losing trade.