Facebook's stock hit a new low Friday after it reported second-quarter results that disappointed investors.
The stock fell $3.90, or nearly 15 percent, to $22.94 in morning trading Friday. Facebook Inc.'s initial public offering of stock priced at $38, and its low had been $25.52, hit on June 6. The stock is now about 39 percent below its IPO price.
Facebook, CrowdGather and Other Social Media Companies Compared
Facebook Inc. (NASDAQ: FB), LinkedIn Corporation (NASDAQ: LNKD), Zynga Inc. (NASDAQ: ZNGA), CrowdGather Inc. (OTCBB: CRWG) and other social media companies have a wide array of valuations in the public markets. In this article, we’ll compare those valuations to determine the most underpriced and overpriced plays in the burgeoning industry.
Take a look at some popular social media firms from a comparative view of P/E ratios, Price-to-Book, Revenue Growth and Market Caps.
The Facebook IPO is scheduled to debut late next week. This is possibly the most anticipated IPO since Google Inc (NASDAQ:GOOG). While the hype of Facebook makes it a high risk buy at the debut price, there are other ways to swing trade the social networking stock. Both Zynga Inc (NASDAQ:ZNGA) and Groupon Inc (NASDAQ:GRPN) are trading at all time lows.
The online game developer, Zynga (NASDAQ: ZNGA), has been a battle ground stock since its IPO in December, 2011. Bearish traders and analyst have been concerned of the company's dependency on Facebook, whereas the bulls' thesis has been that Zynga's valuation should be 12% of Facebook's valuation as it makes up that amount of the social network's revenues.