Facebook Inc. shares sank 6.3% to a record low on Thursday, falling below $20 a share on a day when some early investors were allowed to unload their stakes, adding further pressure on the beaten-down stock.More at the link.
Rules expired Thursday that had restricted some early investors from selling down their stakes after Facebook's initial public offering. More than 271 million Facebook shares became eligible for sale Thursday, though holders could also choose to keep some, or all, of their stakes. Any additional shares would add to the 421 million already in circulation.
Facebook declined $1.33 to $19.87 on the Nasdaq Stock Market at 4 p.m. Thursday, after hitting a record intraday low of $19.69.
The prior closing low of $20.04 was hit Aug. 2. Upward of 141 million shares had traded by 3:30p.m. New York time, more than triple the stock's daily average over the past 30 days, according to the WSJ Market Data Group. That was greater than the full-day activity in all but two sessions: the first two days Facebook was public and the day after it reported second-quarter results in July.
"It's basically supply and demand," said Evercore Partners analyst Ken Sena. "You have a lot of supply of shares coming to market, so even to those who feel that the stock is priced attractively at these levels, there's no reason to step in and buy."
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Friday, August 17, 2012
Facebook Shares Fall to New Low as Investors Dump Holdings
At the Wall Street Journal, "Facebook Shares Fall to New Lows as Lockup Ends":
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