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Facebook Stock Closes at a New Record Low

Facebook - IPO - Stocks - 001

Facebook, the world’s largest social network, is finding it fairly difficult to find any friends to Like its stock.

On May 18 of this year, Facebook shares opened up at $38 to the public. Considering all of the hype leading up to the initial public offering (IPO), it was thought the stock would be a huge success. It closed that day with a paltry gain, and finished up at $38.23. Since that time it has been pretty much a downward spiral for the share price.

Aug. 16 marked the first day that early investors with restricted shares could begin selling them off, and with 271 million shares between them, that was a potential for a lot more supply to enter the market and drive down demand. By 3:30 pm Eastern, around 141 million shares had been traded for the day, representing nearly three times the volume of an average day. The share price fell 6.27 percent for the day to close at $19.87, the lowest closing price yet for the beleaguered stock. It did have an intraday low of $19.69, but was able to regain some ground before the final bell rang.

Since it appears that those with restricted shares do want to offload some of them, Facebook now has to worry about the expiration of other lockups. The largest comes this Nov. when over 1 billion shares will be eligible for sale, and the last rolls around next May.

Analysts are predicting bad things when it comes to the Nov. restriction lift, but just how bad remains to be seen.

[via The Wall Street Journal]


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Sean P. Aune

Sean P. Aune has been a professional technology blogger since July 2007, but his love of tech dates back to at least 1976 when his parents bought...Sean P. Aune has been a professional technology blogger since July 2007, but his love of tech dates back to at least 1976 when his parents bought...


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