One of the world's richest men has bucked the Facebook share sell-off trend by investing $10.1 million in the plummeting stock, which has shed almost 50 percent of its value since its public offering in May.
Legendary investor George Soros clearly 'likes' the tanking stock after investment filings revealed he bought 341,000 shares in the social network site in the second quarter, the UK's Telegraph reports.
But the move has not yet paid off for the hugely successful hedge fund investor.
Facebook's share value has plunged a further 34 percent since Soros bought the stock amid doubts over the value of the company.
It is estimated Soros has lost $3 million on the stock in that time, with Facebook shares now priced at just over $20 after their IPO at $38.
Australian stock investment firm Motley Fool believes with Facebook’s tumbling share price, Soros is “looking for bargains”.
“With so many users the Facebook business is enormous but the big question is whether they can monetise that audience,” said Motley Fool analyst Scott Philips.
“Clearly Soros thinks they can.”
The move comes as Facebook yesterday started putting advertiser posts on users’ newsfeeds in a bid to generate more advertising revenue.
But Motley Fool will not be urging its clients to rush out and buy Facebook just yet.
“I wouldn’t say buy it. It’s still listed at 50 times its earnings so there’s still a lot of blue sky in that share price,” Philips said.
Soros, who is ranked the 22nd richest man in the worth with a $20 billion empire according to Forbes, has still successfully increased his share portfolio this year.
His stock holdings have grown from $6.8 billion to $6.9 billion in the first quarter, the Wall Street Journal reports.
Filings also reveal Soros upped his stake in US retail giant Wal-Mart to 4.8 million shares, worth $337 million.
The 82-year-old billionaire last week announced plans to marry for the third time to 40-year-old Tamiko Bolton, a yoga website owner.