Why Are Facebook Stocks Plummeting?

Today, Reuters reported that Facebook stock dropped below 20 bucks today, and, with  several tiers of shares unlocking starting on August 16, it doesn’t look like investor confidence will be returning anytime soon.

Okay, so I may have written a doom-and-gloom post last week after Facebook announced its first earning report since going public in May, but their slight loss (or gain, depending how you look at it) doesn’t really affect the scads of FB users — nor has traffic on the social networking site dipped in any way.  It’s just that they HAVE to make more money, and they aren’t quite sure how to go about it, it would seem.  We’re talking about some brilliant people, Mark Zuckerberg included, but as I noted in that other post, Facebook just isn’t set up like e-commerce sites whose visitors are there to buy something.

Facebook is a virtual clubhouse, offering people a break from the rigors of their day–a place to hang out and share information, photos, and funny clips of things like cats and dogs frolicking in backyards. Its visitors aren’t there to buy stuff– they aren’t there to look at the ads that line the sidebar, and they certainly don’t click them.

So, what can Facebook do? but I’m sure if I DID know the answer, Zuckerberg and Co. would fly me down for a chat.

Read the Reuters story, “Facebook Shares First Time Below $20

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