Mark Zuckerberg Acknowledges Facebook Stock Price Problem With Employees
In a rare acknowledgement by anyone at Facebook, Mark Zuckerberg recently commented on the rapid decline in stock price of Facebook shares after the much anticipated IPO.
During an employee meeting, he described the drop as "painful" and according to the Wall Street Journal, the meeting was "an effort to buck up morale" which has widely been reported to have sunk very low.
Zuckerberg, high ranking inside employees and some banks have been under criticism for making the IPO value seem bigger than it was and for misleading bankers and the public about the real health of Facebook during the IPO and for artificially inflating the value in an attempt to create momentum.
When asked by an employee if they can talk about the situation with Facebook stocks, Zuckerberg replied, “people should feel comfortable talking about it,” but the price shouldn’t be the focus.
Zuckerberg tried to raise morale by telling employees the public does not know about the investments Facebook has made over the last year that will result in growth and a stock price gaining value.
Friday morning the stock opened nearly 47% below its IPO of $38 a share, now trading at $19.87 a share.
Facebook has seen a loss of advertisers and a 2% loss of users over the last year, and in filings, the company also admitted that around 4% or 5% of the claimed 850 million users are fake accounts, duplicate accounts and accounts for pets.