| Log In | Register Now
Top Stories 1 of 3
PrintEmailOrder ReprintsBy Gerry Shih | September 25, 2012 3:00 AM EST
Facebook
Must Read
Facebook's shares slid 10 percent to $20.64 in mid-day trade on Nasdaq, about 46 percent off of its $38 IPO price in May. The decline shed most of its gains from the previous week, when shares were boosted by news that the company was testing a new mobile advertising network.
"Is the stock a buy? The short answer is 'No,'" Andrew Bary wrote in the latest edition of Barron's over the weekend. "The stock trades at high multiples of both sales and earnings, even as uncertainty about the outlook for its business grows."
At $15, Facebook would still be richly valued at 24 times its projected 2013 profit. That's compared to established tech giants Apple and Google
Aside from the No. 1 social network's struggle to adapt to the rise of mobile devices, Barron's also highlighted Facebook's stock compensation costs, which have ballooned as the company fights to hold onto its employees by dangling more shares.
Barron's estimated that Facebook's restricted-stock issues were "so large last year that it may have exceeded its cash compensation costs."
"CEO Mark Zuckerberg seems to have a cavalier attitude" about stock compensation, Barron's wrote, because of the company's policy of granting more shares to employees to make up for its declining stock price.
(Reporting By Gerry Shih; Editing by Bernard Orr)
Top Ten Most Peaceful Countries in the World in 2013 [SLIDESHOW]
Kim Kardashian Baby Girl: Suggested Ways Kanye West’s New Born Can Earn Money to Keep Up with the Kardashians [PHOTOS]
'Game of Thrones'-like Film, 'The Queen of the Tearling,' Casts Emma Watson as Lead Star and Exec Producer [PHOTOS]
Asus Transformer Infinity Pad, Sony Vaio Duo, Toshiba Satellite, A Look at Intel's Haswell 4th Generation Ultrabooks and Notebooks [Photos]PrintEmailOrder ReprintsTOP PICKS
Confirmed iPad Mini 2, iPad 5 Specs on Release Date: Pixel-Rich Retina from Samsung & Narrow Bezel around the Tablet Screen
Google Reportedly Drops Asus from Nexus 7 2 Project, Guns for July Release Date ahead of the iPad Mini 2 Launch
iPad 5 Release Date This Month; iPad Mini 2 Launch in August?
2 Confirmed Killer Features for iPhone 6, iPhone 5S Release Date: Huge Battery & Instagram-Like Camera Features![Metallic iPhone 6 Render is Sexy, Powerful Enough to Defeat the Plastic-Wrapped Galaxy Note 3 [PHOTOS]](http://img.ibtimes.com/www/thumb/mainpage/373990-7458-metallic-iphone-6-render-is-sexy-powerful-enough-to-defeat-the-plastic.jpg)
iPhone 6 Killer Features: Apple Smartphone to Pack iRadio, In-Car Integration and Other High Tech CapabilitiesWe value your privacy. Your email address will not be shared.
![Metallic iPhone 6 Render is Sexy, Powerful Enough to Defeat the Plastic-Wrapped Galaxy Note 3 [PHOTOS]](http://img.ibtimes.com/www/thumb/mainpage/373990-195110-metallic-iphone-6-render-is-sexy-powerful-enough-to-defeat-the-plastic.jpg)
