Facebook stock falls below half its IPO price
Facebook shares on Monday fell below $19 for the first time -- less than half the $38-a-share price of its initial public offering.
After closing at $19.07 Friday, Facebook shares slid to a new low of $18.75 in midday trading. The stock recouped the loss and was later trading at well over $19 a share.
Late last week, Facebook shares took a hit after the expiration of a provision that had barred certain investors and insiders, including employees, from trading some of their shares.
A Los Angeles Times story last week also noted that investors have begun wondering aloud whether Facebook co-founder Mark Zuckerberg is cut out to continue being the company’s chief executive.
Although the company has gone public, Zuckerberg has continued to focus on long-term goals while ignoring short-term outcomes and satisfying investors.
Reporting its first public quarterly earnings last month, the company beat analysts’ revenue estimates, but investors were scared by its expenses and slowing growth.
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