Facebook stock plummets to $20 a share

Shares in Facebook skidded to a new low of $20 per share Thursday as the company continues to struggle to raise revenues.

Facebook stock opened to strong buzz and a $38 per share price tag in May. However, poor quarterly earnings and a less than spectacular first ever earnings call have left Facebook stock on a downturn.

The slide comes after the company admitted that some 83 million of its user accounts were in fact duplicate or otherwise illegitimate profiles.

Analysts had warned that the company's original $38 per share price was too high back in May. Analysts said Facebook faced challenges growing its the ad revenue and mobile presence, threatening to derail future growth.

The company tended to side with analysts warnings of the same issues in its summary of risk factors for its original IPO filing.

"Growth in use of Facebook through our mobile products, where we do not currently display ads, as a substitute for use on personal computers may negatively affect our revenue and financial results," Facebook wrote in its IPO filing in May.

The company currently has fewer opportunities to gain ad revenue through the mobile platform. That may be producing growing concerns for the business, as more than half of the Facebook's monthly active users were on a mobile platform during the second quarter of 2012.

One saving grace for the company may be the strong returns for its sponsored stories ads. The company pointed out in its earnings call that the social ads, which can be monetized on mobile platforms, saw $1 million a day in profits.

Analysts have told V3 that sponsored stories ads hold strong potential for the social networking giant. However, Facebook executives have warned that sponsored story ads currently only represent a small portion of the company's total ad revenue.

Facebook has also seen major litigation troubles from its much maligned IPO. The social networking company is currently being investigated for potential giving preferential warnings about future revenues to select clients.