Facebook Stock Drops Below $20
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.
Next year when you look up "Facebook IPO" on Wikipedia, it will say see "Ponzi Scheme"
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.
In order for them to be the next Enron they'd have to get caught committing criminal accounting violations
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.
Probably on an island they now own.
If you say so, you just can't handle you fell for the stock hype and it's crashing down on you.
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
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.