Facebook Shares Fall to Lowest Point

20 Aug, 2012

Facebook stock slid to an all-time low of $18.75 Monday morning, less than  half the initial public offering price.

The social network’s stock slumped Friday to $19, losing half its market  value since the company’s initial public offering in May and ending the week  down nearly 13 percent.

Facebook hit the $19 milestone a day after the expiration of a lock-up period  that had previously prevented some early investors and insiders from selling  their shares. Stakeholders who owned a combined 271 million Facebook shares  before Thursday can now sell their holdings.

A breakdown of just how many major Facebook Inc. shareholders sold their  stock this week won’t be available until next week at the earliest, when sellers  must disclose such transactions.

Facebook’s stock has struggled since the company’s mid-May IPO. It closed its  first day of trading barely above its initial offering price of $38. It has been  below that level since.

The stock has been down on 38 trading days, up on 25 days and unchanged on  one since its initial public offering.

Investors have been concerned about the social network’s ability to increase  revenue and make money from its growing mobile audience. Many analysts, however,  hold positive opinions of the company’s long-term prospects.

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