Doubts about the Facebook founder intensified Thursday as the stock closed below $20 for the first time. The shares, which slipped to $19.87, have shed nearly half their value since Facebook’s disastrous initial public offering three months ago.
Thursday’s selling was driven by the expiration of provisions that had barred Facebook’s venture capital backers from unloading their shares. Trading volume was abnormally heavy, a sign of the fury with which some of the company’s earliest investors ran for the exits as soon as they could.
Zuckerberg, known for his unconventional business practices such as ditching the traditional business suit for a hoodie, jeans, and sneakers, may need to consider evolving a bit in order to yield a more successful future for his social networking site.
While his “cool” look may appeal to the largely young crowd of facebook users, his advertising revenue is plummeting.
Zuckerberg’s indifference to traditional corporate etiquette — he wore sneakers and his trademark hoodie for Facebook’s first big investor meeting — is viewed as disrespectful of the corporate world he needs to win over.
“His behavior is what I would expect of someone his age — the hoodies and everything else,” said Chris Whalen, senior managing director at Tangent Capital Partners in New York. “He’s trying to appeal to his audience instead of being responsible to his investors. His job now is to run the company.”
read more at The LA Times