Facebook might be the world's most favorite and popular networking site but the company has lost its shine on Wall Street and has been making attempts to increase its revenue. Once identified as the most valuable technology company to hit Wall Street, Facebook is now worth just over half what it was three months ago, with shares closing at $20.01 Monday.
The troubles for the company began when it went public and even the people who handle Facebook's business end, the chief financial officer David Ebersman and the chief operations officer Sheryl Sandberg did not show the skills to avert the disaster that came with the initial public offering. Even the bankers, Goldman Sachs and Morgan Stanley, who handled the deal could not predict or save the company from the outcome of the offering. The important thing for Facebook is "to stay focused on the fact that we're the same company now as we were before," Mr. Ebersman said in its maiden earnings call in late July. Immediately after, the stock plummeted.
Dan Alpert, a partner with Westwood Capital, an investment bank talking about the deal said, "The company is suffering from a classic disease - it went public at too high a value." The company however did not participate in the Facebook offering.