Facebook stock drops below $19

2012-08-20 18:33

New York - Facebook's beleaguered stock has lost more than half of its value since its initial public offering three months ago.

Facebook Inc.'s stock slid 7 cents to $18.98 in morning trading on Monday. Earlier, it hit $18.75, a new low. The social networking icon's much-anticipated IPO turned sour amid technical problems on the NASDAQ stock market and high expectations. The stock has not surpassed its $38 IPO price since its first trading day.

Investors are worried about Facebook's ability to grow revenue quickly, especially when it comes to garnering mobile advertising dollars as users flock to smartphones and tablet computers.

There are also looming expirations of the IPO lockup periods. Lockups preventing many Facebook employees from selling stock expire this fall, potentially flooding the market with more shares.


  • tankiso.mofokeng - 2012-08-21 09:17

    As an astute investor with a few years of the fundamentals; It was utterly bizzare for a company like facebook (surrounded by hype) to have that kind of IPO. Facebook manufactures nothing, provides no tangible service & has no real advertising revenue generation plan. Realistically speaking; It is common sense that Facebook shares are south-bound & will continue to drop because facebook users don't go to facebook with a 'buy' mentality, That's what Google is for & I would rather buy shares in Google. These are the shares that perfect makes sense to buy: 1. SABMiller (In happiness, sadness, leisureness, idleness & boredomness) 2. Apple (Technology Stock) 3. Cherry & Ice Investments (Fastest growing property company) 4. Exxon Mobil (Commodity Stock) 5. BHP Billiton (Resources Stock)

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