How Low Will Facebook Shares Go? 'Lockup' Expires, Stock Plunges [View all]
Facebook shares were supposed to do the lambada, not the limbo.
Instead stock in the social networking giant, whose contortions have demoralized investors, sank to a fresh low on Thursday, losing more than $4 billion of market value after the first in a series of "lockups" expired that had kept insiders from selling their shares.
Facebook shares plunged as much as $1.49, or 7%, to $19.71 in Thursday morning trading. Itís getting close to losing half its value since its much-hyped initial public stock offering in May that put its value at $100 billion.
Facebook already had 421 million shares trading. On Thursday 271 million more became eligible to be bought and sold. If many insiders sell, that could put increased pressure on the already depressed stock. Facebook's stock is close to doubling its usual trading volume with about 84 million shares trading hands already Thursday.