Financial analyst predicts Facebook flop

Posted: Updated:
By Andrew Michalscheck By Andrew Michalscheck

PHOENIX -- A Phoenix financial analyst predicts Facebook’s stock will continue to plummet, as investors continue to pile up lawsuits against the social media giant.

“Now is not a good time to buy Facebook stock,” said Phoenix-based financial expert Ken Beckrich. “There has never been a part where the institutions have stepped in and said this is a compelling valuation.”
Facebook’s stock was valued at $38 a share at its initial public offering in May, and has declined since then, recently hovering around the $31 mark per share.
Beckrick teaches a stock trading class at Online Trading Academy in Scottsdale, and is currently advising his students against purchasing Facebook stock.
“It could fall precipitously, with the lawsuits, and everything that is coming out is pretty much bad,” said Beckrich.
Facebook is currently facing more than 40 separate lawsuits from investors around the country.
“A lot of people lost a lot of money, and they are mad about it,” said Matt Sanders, a recent University of Arizona graduate who estimates he has lost about $5,000 on his Facebook investment, and is one of the dozens of Facebook investors who accuse the company of wrong-doing.
“There were things in the initial IPO that were disclosed to some people and not others. If there was some foul play, there could be a legitimate law suit," added Sanders.
Which is precisely why Beckrich predicts the stock will continue to fall.
“They priced it to try and get as much money out of the American public as they could, and they didn’t disclose everything that was happening with the company,” he said.

A Facebook representative told 3TV that the company has no comment on the lawsuits, or the declining stock prices.