It seems as though Facebook just can't catch a break. So far in premarket trading, Facebook stock has fallen 12.8% to land at $23.40. If Facebook can't get its stuff together and the stock stays near that level, it will be Facebook's lowest closing yet. As of right now, Facebook's lowest closing is at $25.52.
The reason behind this drop is actually fairly simple. Facebook had a disappointing showing in the second quarter. While Facebook met analysts expectations, meeting low expectations isn't something to be proud of. They managed a $157 million loss on $1.2 billion in revenue. This time last year, they posted a $240 million profit.
This latest stock drop comes just two months after the social networking giant went public. The initial public offering was listed at $38, nearly $15 higher than the current stock price. Investors haven't seen the stock at $38, or anywhere near that, since the first day of trading. It doesn't appear to be coming around anytime soon, either.
Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.