Facebook shares sink to record low
August 1 , 2012
Facebook shares fell for a third consecutive day, shedding 6.2 percent to another record low on Tuesday.
The drop comes on the back of poor results indicating low user growth and raising doubts over the social network's ability to maintain its rich valuation.
Last week, Facebook reported results but did not offer a forecast for the year ahead.
Facebook has lost more than 40 percent of its value since May 18, when it became the first American company to debut with a worth of more than $100 billion.
However the stock, despite being down some 6 percent at $21.71, still trades at more than 40 times forward earnings compared to Google’s 15.