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Facebook Stock Drops Below $20

By - Source: Google Finance | B 33 comments

Facebook's stock has hit a fresh new low as early investors apparently unloaded some of their shares.

A staggering 271 million shares have become eligible for sale today and those who either need the money or those who have little trust in the stock were allowed to add their stock to the already 421 million shares currently on the market.

As a result, shares traded lower than the previous closing low of $20.04, which was hit on August 2. Facebook's stock dropped as low as $19.71 and circled the $20 mark throughout the day. At the time of this writing, shares traded for $19.89, giving Facebook a market cap of just $42.7 billion, which is substantially below pre-IPO estimates of about $90 to $100 billion.

It was unlikely that all 271 million shares would hit the market on Thursday, but there was a substantial trading volume of almost 133 million shares, compared to an average volume of 31 million shares per day.

 

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Top Comments
  • 24 Hide
    pacioli , August 16, 2012 9:04 PM
    And soon it will drop below $10
  • 22 Hide
    dalethepcman , August 16, 2012 9:11 PM
    color the entire IT world surprised.

    Next year when you look up "Facebook IPO" on Wikipedia, it will say see "Ponzi Scheme"
  • 20 Hide
    Bombkid , August 16, 2012 9:06 PM
    Seen this coming before the IPO
Other Comments
    Display all 33 comments.
  • 24 Hide
    pacioli , August 16, 2012 9:04 PM
    And soon it will drop below $10
  • 20 Hide
    Bombkid , August 16, 2012 9:06 PM
    Seen this coming before the IPO
  • 18 Hide
    Chairman Ray , August 16, 2012 9:10 PM
    lol
  • 22 Hide
    dalethepcman , August 16, 2012 9:11 PM
    color the entire IT world surprised.

    Next year when you look up "Facebook IPO" on Wikipedia, it will say see "Ponzi Scheme"
  • -3 Hide
    aoneone , August 16, 2012 9:23 PM
    will they become the next Enron? ^_^
  • 9 Hide
    Ragnar-Kon , August 16, 2012 9:23 PM
    dalethepcmancolor the entire IT world surprised. Next year when you look up "Facebook IPO" on Wikipedia, it will say see "Ponzi Scheme"


    More like a "Yo' be stupid to buy at $38/share" scheme.

    Seriously though, doesn't take a genius to realize the company is not worth $104 billion. Hopefully someone will be punished because of it too, because the drop in Facebook stock impacted other stocks as well. But, financial people seem to have a knack of getting outta tight legal situations.
  • 7 Hide
    Pinhedd , August 16, 2012 9:26 PM
    aoneonewill they become the next Enron? ^_^


    In order for them to be the next Enron they'd have to get caught committing criminal accounting violations
  • 15 Hide
    igot1forya , August 16, 2012 9:31 PM
    For a company with a business model of selling out the people who voluntarily give them private information, its kind of sad that they still have nothing to show for it...
  • 16 Hide
    malice81 , August 16, 2012 9:33 PM
    I honestly believe that despite these minor setbacks, facebook will wind up rising to be very profita... pffffffff, hahahahaha, couldn't even get through it :-D
  • 14 Hide
    beayn , August 16, 2012 9:59 PM
    So in "The Social Network 2" we should see details about how he didn't just screw his friend out of huge amounts of money, but also thousands of shareholders.
  • 2 Hide
    Hellbound , August 16, 2012 10:11 PM
    The IPO was to high to begin with..
  • 4 Hide
    Kami3k , August 16, 2012 10:23 PM
    Ragnar-KonMore like a "Yo' be stupid to buy at $38/share" scheme.Seriously though, doesn't take a genius to realize the company is not worth $104 billion. Hopefully someone will be punished because of it too, because the drop in Facebook stock impacted other stocks as well. But, financial people seem to have a knack of getting outta tight legal situations.


    Ha! No one will be punished for this, at least not the people responible for it. Some lower pawns will be the ones to take the fall.

    The ones that made the 100s of millions to a billion plus will just laugh at the suckers who bought the stock.

    The entire tech world knew this was going to happen.
  • 13 Hide
    eddieroolz , August 16, 2012 11:18 PM
    I'm really curious to see where those "analysts" predicting the stock doubling in a year is now.
  • 15 Hide
    bluekoala , August 16, 2012 11:26 PM
    eddieroolzI'm really curious to see where those "analysts" predicting the stock doubling in a year is now.

    Probably on an island they now own.
  • -6 Hide
    chumly , August 16, 2012 11:37 PM
    Facebook is already more established than the telephone was in its infancy. I don't think it's going anywhere.
  • 1 Hide
    Kami3k , August 16, 2012 11:59 PM
    chumlyFacebook is already more established than the telephone was in its infancy. I don't think it's going anywhere.


    If you say so, you just can't handle you fell for the stock hype and it's crashing down on you.
  • 15 Hide
    bllue , August 17, 2012 12:39 AM
    Die facebook, die!
  • -2 Hide
    bin1127 , August 17, 2012 12:46 AM
    Now its the time to buy! if you bought at $35, $20 is a steal.
  • 4 Hide
    oj88 , August 17, 2012 1:02 AM
    If the unlocked 271 million shares can cut its IPO price in half, what will happen when 1200 million shares are set free on 12/13/2012, which could be the doomsday for Facebook's stock price. You just cannot trust Wall Street.

    Date More Shares for Sale
    05/17/12 421M, IPO
    08/16/12 271M
    11/15/12 137M
    12/13/12 1200M
    01/15/13 149M
    06/18/13 47M
  • 1 Hide
    kronos_cornelius , August 17, 2012 1:09 AM
    Now I understand why there is an wealth disparity. The middle class is constantly fooled into funneling money into Wall Street. Anybody that put in $1000 into Facebook does not know where $500 of that money went. It is unlikely the dividends will make up for it, and the long term for Facebook is bleak.

    I don't know there are only a couple of prestigious stock exchanges. It would be more fair to have more stock exchanges, and for people to invest on things they know. Playing the stock market like a lottery inevitably drives people to lose their money... like the lottery.

    I knew the values of this company where dodgy since one of the co-founders renounce US citizenship to allegedly dodge taxes.
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