Earlier today, Facebook unveiled its third pillar, Graph Search. While the announcement was highly anticipated, the unveiling didn’t live up to the hype from the investors’ perspective, as the stock (NASDAQ:FB) is currently down 3.23 percent at 29.95 – below $30 again.
For the past two weeks, investors have been anticipating a big announcement coming from Facebook. It explains the recent uptrend. Depending on what was actually announced, shares could have held steady at $31 or could have dropped slightly. Today’s scenario seems to be the latter.
There was a slight chance that the new product would have been much better than everyone’s dreams, but a very tiny one. A phone would probably have had such an effect.
Facebook shares are just readjusting to a more accurate level. As a company, Facebook still suffers from high volatility on the stock market. Investors care about Facebook and still like to follow each and every product update.
Facebook’s IPO price was $38 a share on the company’s first trading day in May. Yet, in August, the stock dropped to its lowest price at the time — $19.69 — as the initial lockup expiration kicked in.
Trading above $30 was a major milestone for the company. Even though today’s downturn is a setback, Facebook shares are following a positive trend these days. It should go above $30 a share once again in the near future — maybe even later today.
What’s interesting is that Facebook does not shy away from introducing radical changes to its products. As always, it focuses on what’s best for the user and will stand behind an innovation if it believes that it will improve the user experience.
Yet, investors have different needs in mind. They like conservative choices, security and stability. That’s why they should adapt to Facebook’s way of doing things if they want to understand the company’s long-term perspective, because Graph Search is clearly an important move for Facebook.
Check out more of TechCrunch’s coverage of Facebook Graph Search:
Facebook is the world’s largest social network, with over 1 billion monthly active users. Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a Facebook network. Zuckerberg immediately recruited his friends Dustin Moskovitz, Chris Hughes, and Eduardo Saverin to help build Facebook, and within four months, Facebook added 30 more college networks. The original...