Facebook shares slump to a record low The company entered its eighth trading session today and promptly fell 4.8pc, taking total losses since its flotation on May 18 to more than 20pc. Sam Hamadeh of PrivCo warned shares had yet to bottom-out and that a fair valuation for the company was $24.60 considering projected earnings figures. He said the technology industry was currently experiencing a "mini bubble." "The problem with valuations we have seen at $38, $40, $45 and so forth is that they made assumptions about future performance of Facebook that have little to do with reality in terms of what is realistically achievable," he said. Reasonable people can disagree on future growth potential for a company, but these assumptions do end up making an enormous difference in fair value estimates. But those valuations would require Facebook to grow some 75pc annually for the next several years. And we think given that Facebook is still materially overvalued - and that there are even more risks than opportunities for the company - it is more likely to keep falling in the short term and long term than grow. Facebook shareholders have sued founder Mark Zuckerberg, along with the company and several banks, for allegedly hiding a weakened growth forecast ahead of its initial public offering. Investors claim that there was a "severe and pronounced reduction" in growth forecasts that they were not alerted to. Last week it emerged that large numbers of investors were betting against Facebook by short-selling its shares.