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.
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Wolfgang Gruener is an experienced professional in digital strategy and content, specializing in web strategy, content architecture, user experience, and applying AI in content operations within the insurtech industry. His previous roles include Director, Digital Strategy and Content Experience at American Eagle, Managing Editor at TG Daily, and contributing to publications like Tom's Guide and Tom's Hardware.
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dalethepcman color the entire IT world surprised.Reply
Next year when you look up "Facebook IPO" on Wikipedia, it will say see "Ponzi Scheme" -
Ragnar-Kon dalethepcmancolor the entire IT world surprised. Next year when you look up "Facebook IPO" on Wikipedia, it will say see "Ponzi Scheme"Reply
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. -
Pinhedd aoneonewill they become the next Enron? ^_^Reply
In order for them to be the next Enron they'd have to get caught committing criminal accounting violations -
igot1forya 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...Reply -
malice81 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 :-DReply -
beayn 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.Reply