Facebook Got Crushed Today

mark zuckerberg

Photo: Flickr, Andrew Feinberg

Facebook had been doing so well! Then Barron’s had to come along and ruin the party.Facebook’s stock fell 9% today after Barron’s said the stock was only worth $15 this weekend.

During the day it fell as much as 10%, tripping a NASDAQ breaker, which protects stocks getting hammered.

The stock had been on a run after Mark Zuckerberg gave a pretty wide-ranging interview two weeks ago.

Barron’s article on Facebook wasn’t filled with particularly new insights. It mostly listed all the issues with Facebook people have been talking about since the S1.

The main reason Barron’s is negative on Facebook is that users are increasingly mobile, and Facebook missed that shift.

No question Facebook missed the shift, but it is fixing that error. It’s building native applications for iPhones and Androids. It’s working on mobile advertising, which it says is going well. It also started a mobile ad network, which could be promising.

However, Facebook hasn’t really earned investors trust, so saying “trust us, mobile will be fixed,” isn’t all that assuring.

But if you’re selling based on Barron’s story, you’re looking backwards, not forwards on Facebook.

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