Facebook Stock Drops Below $19
Facebook stock continues to drop. Since its initial public offering three months ago, the price for Facebook has been cut in half. Currently, the stock is valued at around $19.
According to the Associated Press, the price for Facebook stock dipped below $19 for the first time this morning. The stock dropped all the way down to $18.75 at one point, but, during morning trading, it rose above $19 again to $19.01.
The Huffington Post notes that the stock has been on a steady decline since its first day of trading. The stock has never crept above its $38 IPO price.
Read Write Web says that the latest slide was probably due to the fact that the freeze on major shareholders was lifted this weekend. Goldman Sachs, Accel Partners, and several other big firms are now allowed to sell their 271 million shares of Facebook. The shares weren’t immediately dumped, but the fact that they were available may have panicked some investors.
The panic from the influx of shares was temporary, but that doesn’t mean that Facebook stock will start to rebound this week. Investors are weary about Facebook’s ability to grow revenue. There are also a few more IPO lockup periods that will expire this Fall, allowing Facebook employees to add more shares to the market.
