Facebook falls again as Opera deal talk swirls
FACEBOOK shares yesterday dropped below $30 for the first time in yet another dismal day of trading for the freshly-listed internet giant.
Shares fell by as much as 10 per cent, closing at a new low of $28.84 in a fresh blow for Mark Zuckerberg and the uber-hyped flotation of his Harvard-founded company.
One reason circulating for the stock plunge is that yesterday was the first day of trading in Facebook options, which allows investors to bet on the direction of a share price with less capital exposure.
Concerns about the company’s ability to make money from its rapidly growing number of mobile users are also clouding the firm.
But rumours that the tech giant is in talks to buy Opera, the mobile phone software firm, sent shares in Oslo-listed Opera up by 19.5 per cent to a £434m market cap.
Norwegian research firm Arctic Securities said: “Opera would be sensible for Facebook on several levels. It would enhance the now limited mobile experience of Facebook, improve Facebook’s mobile monetisation problem, help Facebook retain online game developers leaving the social network over the lack of a mobile platform and further improve Facebook’s ability to target ads.”