Skip to main content

Facebook stock rises for first time in four days

After a disappointing first two weeks on the NASDAQ, Facebook has seen an increase in stock price for the first time in four days.

Despite the five per cent rise to $29.60 (£19) recorded on 31 May, shares of the social network are continuing to trade below their $38 (£24.7) IPO price.

At its lowest, Facebook stock dropped to $26.83 (£17.4), amounting to a $30 billion (£19.5 billion) loss in value since its initial $104 billion (£67.6 billion) valuation. The IPO made the social network the first US company to make a market debut with a value of more than $100 billion (£65 billion).

Analysts appear to be wavering between betting on a sell-off or a sudden rebound, and it's unclear how that uncertainty will affect the company's stock going forward.

The initial announcement about Facebook's valuation was met with scepticism, with many claiming the company has thus far not proved itself capable of making the transition from social network to other markets.

The IPO on 18 May was plagued by technical problems that resulted in significant trading delays, and the company just barely managed to finish above its initial offering price.