New York: Shares of Facebook plunged to all-time closing low after the expiration of a lock-up period that has provided early investors and insiders with an opportunity to exit.
With Thursday's selloff, Facebook has lost almost USD 50 billion, or just under half, of its value since its IPO. The stock, which debuted at USD 38, fell as much as 7.1 percent to a all-time low of USD 19.69 before ending the day at USD 19.87.
If the stock hits USD 19, it will have lost half its value since Facebook went public in May.
More than 270 million shares owned by early investors became available for trade on Thursday after a 3-month curb on sales ended. That's more than half the 421 million shares sold in its initial public offering on May 18.
The company founded by Mark Zuckerberg in his Harvard dorm room became the only US company to debut with a market value of more than USD 100 billion.
But investors have since grown disillusioned with Facebook's inability to articulate a plan to reverse slowing revenue growth - due in large part to its limited mobile advertising efforts - sending the stock down almost 50 percent from its USD 38 debut.
Many investors remain unnerved by the massive flood of shares still waiting to be released: More than 1.4 billion additional shares will be eligible for selling by year's end, nearly tripling the amount available for trade.
It's been a rough run for Facebook. After one of the most anticipated initial public stock offerings in history, it suffered what may be the most-botched IPO as trading glitches marred its first day. It's been almost all downhill since then.
With Agency Input
First Published: Friday, August 17, 2012, 09:34