Facebook Shares Dip Below $20 Mark

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The launch of the Facebook IPO was one of the most anticipated events of the year. Some expected the stock to skyrocket and would never have believed that just two months later Facebook shares would be hovering around the $20 mark.

While many people would view this as the ideal time to buy into the stock, Topeka Capital analyst Victor Anthony, says that you may have to be quite patient before you see returns. According to Anthony, Facebook will only be hitting its opening $38 price around the end of 2013.

Anthony presents four reasons for his estimate: lock-expirations, Facebook’s mobile strategy, revenue growth and a general lack of demand from institutional investors.

Despite the challenges being faced and the negative sentiment over the stock, Anthony believes that the stock was appropriately priced at the IPO despite what others may believe. “Stocks can be mispriced for long periods of time until the market sees the value,” he said.

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