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Facebook shares reach a new low, how much worse can it get?

Facebook shares reach a new low, shares in the social network are now trading 43% lower than the IPO

Anthony Garreffa | Aug 1, 2012 at 5:26 am CDT (1 min, 16 secs time to read)

Facebook have not had a good time since their IPO launch, where they began trading at $38 per share. But at the close of Tuesday this week, shares were down another 6-percent, reaching just $21.71 per share. This represents a drop of 43-percent since the social networking site went public.

Facebook shares reach a new low, how much worse can it get? | TweakTown.com

Even after Facebook's first ever earnings report as a public company was released, there are still concerns over the social networking sites growth, which just don't seem to be going away. Investors had hoped to have seen more progress in terms of the user growth, and how the company is capitalizing on the rapid increase of mobile usage. Investors wanted Facebook to "show confidence they could grow the company, and they didn't", said Francis Gaskins of IPODesktop.com.

But, are we at the bottom of the barrel yet? It appears not. Come August 16, just a mere 91 days after the IPO, insiders such as company officers, directors and employees, can sell a whopping 268 million shares of stock. Between 91 and 181 days after the IPO, insiders can sell an additional 137 million shares. If these shares are to see any move, it could spell quite the disaster for Facebook, and drive their share price much, much lower.

I think we're going to see a fair amount of movement in the coming weeks regarding Facebook's share pricing, once those 91 day flood gates open, will they ever close? Could we see a sub-$10 share price, or lower? We're talking billions of dollars here, folks. What are your thoughts on the matter?

Last updated: Apr 7, 2020 at 11:28 am CDT

NEWS SOURCE:usatoday.com
Anthony Garreffa

ABOUT THE AUTHOR - Anthony Garreffa

Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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