Facebook Continues to Fall; Stock Breaks $22
Facebook (NASDAQ: FB) is sitting at a new all-time low on Tuesday, below the $22.00 level. The stock has been falling throughout the session and was last down nearly 6 percent at $21.86. Over the last 5 trading sessions, the stock has lost more than 23 percent and is still in free-fall.
The catalyst for the move lower was the company's first-ever earnings report which is stoking fears of slowing growth. Facebook went public in the biggest tech IPO since Google (NASDAQ: GOOG) at $38.00 per share.
Needless to say, many investors have been burnt by the hyped-up deal. On Tuesday, UBS (NYSE: UBS) disclosed large losses related to the IPO and blamed Nasdaq OMX (NASDAQ: NDAQ) for the trading glitches which caused the bank to lose money.
The good news for investors is that the cheaper Facebook gets, the better it looks as an investment -- for those that already haven't been burned in the name. Given the huge sell-off in the stock, Facebook's valuation could be starting to look attractive.
Currently, the stock trades at a forward P/E of 34.16 and a PEG ratio of 1.70. Although this name is very frightening to step up and buy right now, if it falls to $20.00 it definitely might be worth a look for a trade.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.