Facebook dives as Google hits record
FACEBOOK shares plunged nearly 11 per cent overnight after an influential markets publication slashed its valuation of the stock, but investors continued to embrace Google after its shares stepped higher to a new record.
Facebook shares dropped as low $US20.36, sharply down from Friday's close of $US22.86, before paring losses in afternoon trade.
The fall came after Barron's, the markets-focused newspaper and website, published a story saying the world's largest online social networking company was still sharply overvalued despite trading at just over half of its initial price.
"Facebook's 40 per cent plunge from its initial public offering price of $US38 in May has millions of investors asking a single question: Is the stock a buy?" Barron's said.
"The short answer is 'No.' What are the shares worth? Perhaps only $US15," Barron's said, adding that even at that level they are "no bargain."
Read more at Brisbanetimes.com.au