Facebook plunges 9% on $15 price callSeptember 24, 2012: 1:03 PM ET
Since its botched initial public offering in May, investors have heatedly discussed the following question about Facebook (FB): How low can it go?
After surging last week to a recent high of above $23 a share from its all-time low of $17.55, it looked like the Facebook fans finally had reason to celebrate. But Facebook's stock plummeted more than 9% Monday after an article appeared in Barron's over the weekend which declared that $15 is the right price for Facebook. The debate between Facebook bulls and bears continued on StockTwits.
It's true that there's not much new in the article. The author notes Facebook's well-chronicled troubles, particularly its challenge making money from the shift to mobile web browsing.
Yet it still may be shocking to the broader investing public to see just how much more expensive Facebook is than Google (GOOG) and Apple (AAPL). At $23, Facebook is trading at 47 times its projected 2012 profit. Both Google (GOOG) and Apple (AAPL) only trade for 16 times 2012 earnings.
Still not all traders agree, and some members of the StockTwits world clearly think that a price below $21 is s a good time to buy.
So will Facebook fall to $15? I'm not sure. But it seems like the days of predicting outlandishly high price targets for Facebook are ancient history. Now, the eye-popping predictions just keep getting lower and lower.