Facebook Share Price Recovery Stumbles

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By Douglas A. McIntyre Updated Published
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The price recovery of Facebook Inc’s (NASDAQ: FB) shares was trending, but they are selling down again. Optimism that the social network has found a way to raise rates on the ads it runs, and that it had unlocked the value of its users who access the site on mobile devices, moved shares from less than $26 at the end of last year to almost $33 at the end of January. Since then, the stock has declined to less than $27.

There is no single cause for the drop. One trigger may be the success of LinkedIn Corp. (NYSE: LNKD). Investors like the company because it has multiple sources of revenue, which Facebook, despite its efforts, does not. Another red flag for Facebook investors is research that says people spend less time on the site than they did just months ago.

Finally, Facebook continues to be grouped with a series of Web 2.0 companies, including Zynga Inc. (NASDAQ: ZNGA) and Groupon Inc. (NASDAQ: GRPN), which should have been sold privately to large companies like Google Inc. (NASDAQ: GOOG) and not pawned off on public corporation investors.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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