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Facebook stock slide deepens on third trading day

The financials

Key financial statistics for Facebook, Apple and Google. Projections for 2012 are among analysts surveyed by FactSet. Price-to-earnings ratios are based on Tuesday’s close.

FACEBOOK:

Price-to-earnings ratio, using earnings from last year: 85.

2011 net income: $1 billion.

2012 projected net income: $993 million.

2011 revenue: $3.7 billion.

2012 projected revenue: $5.1 billion.

APPLE:

Price-to-earnings ratio, using earnings from last year: 13.6.

2011 net income: $25.9 billion.

2012 projected net income: $44.3 billion.

2011 revenue: $108.6 billion.

2012 projected revenue: $162.3 billion.

GOOGLE:

Price-to-earnings ratio, using earnings from last year: 18.2.

2011 net income: $9.7 billion.

2012 projected net income: $12.5 billion.

2011 revenue: $37.9 billion.

2012 projected revenue: $35.5 billion.

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Source: FactSet.

Price history

Facebook Inc. began trading publicly on Friday following one of the most anticipated stock offerings in history. The initial public offering of stock priced at $38 on Thursday. It was at the top end of a projected range that Facebook had already increased just days earlier.

Although many investors had hoped for a big first-day pop, Facebook’s stock opened Friday at $42.05 and fluctuated between $45 and $38 throughout the day. It closed barely above its IPO price, at $38.23.

Here’s how Facebook’s stock has traded since the IPO:

— Friday: Closed at $38.23, up 0.6 percent from IPO price.

— Monday: Closed at $34.03, down 11 percent for the day, down 10 percent from IPO price

— Tuesday: Closed at $31, down 9 percent for the day, down 19 percent for the week, down 18 percent from IPO price.

Updated: July 2, 2012 9:27AM



Facebook’s newly public stock slid further on its third trading day as investors reconsider how much the social network is worth.

The company’s long-anticipated initial public offering of stock raised $16 billion, valuing the company at $104 billion. But Facebook’s stock has plunged, closing at $31, down 9 percent for the day, 19 percent for the week and 18 percent from the IPO price of $38 a share.

The latest price values the company at about $91 billion. $85.3 billion.

The downward spiral has left some people sitting on big losses and others scratching their heads. After all, nothing fundamental has changed at Facebook in the days since the much-hyped company came to Nasdaq Stock Market with a ticker symbol of “FB.” Facebook still has more than 900 million users, its 28-year-old founder Mark Zuckerberg controls the company, and it is still one of the few profitable Internet companies to go public.

On Tuesday, Massachusetts’ top securities regulator said he is investigating whether Morgan Stanley selectively divulged to some clients, just before the offering, that its analyst had cut his revenue estimate for Facebook. Morgan Stanley was the lead underwriter for Facebook’s IPO.

The analyst’s revision followed an amended filing by Facebook in which the company said a shift by many Facebook users toward mobile devices might limit its revenue growth.



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