Facebook stock in May? $38. Now? $18.

Facebook stock hit a new low this week. Will it rebound? 

Reuters
It's been a rough week for Facebook.

Tumbling, slumping, tanking, nose-diving into the soup.

Pick any descriptor you like – Facebook stock is down. And it does not seem to be going back up. On Friday, after analysts at Bank of Montreal and Bank of America-Merrill Lynch cut price targets on Facebook stock, shares in the company hit $18.14, the lowest since Mark Zuckerberg rang the Nasdaq bell on May 18. Facebook shares are now 52 percent below the initial IPO price, the Wall Street Journal reports

The decline, notes the AP, "has been driven by a realization that the company's revenue isn't going to grow as rapidly as people envisioned during the breathless run-up to the IPO." In other words, there's the hype and now there's the reality. Meanwhile, a number of early Facebook investors have been rapidly unloading shares left and right; in November, Facebook employees will get a chance to sell their stock, too. 

Unsurprisingly, on business blogs, there's been plenty of talk of doom and gloom and shrinking prospects for the social network. But over at Business Insider, Henry Blodget advises the critics to take the long view. "As I listen to all this whining, I have a simple question: Didn't anyone even read Facebook's IPO prospectus?" Blodget writes.

"The answer, I can only assume, is 'no.' Because if anyone had read the Facebook IPO prospectus," he continued, they'd know that Facebook's growth was already decelerating at the time of the IPO. Moreover, they'd know that "Facebook's social mission is more important to Mark Zuckerberg than Facebook's business," Blodget writes. "Facebook's business exists to support Facebook's product development, not the other way around." 

You've read  of  free articles. Subscribe to continue.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.