Facebook hits new low as IPO lock-up ends and shares flood market
August 16,2012
PJ Blogger
Ridgewood NJ, Facebook’s IPO lockup ended to day only to the see the stock plunge to new all-time lows . Today , Thursday marked the expiration of a lock-up period that has provided some early investors and insiders with an opportunity to exit.
The end of the lock-up period freed up 60% or an additional 271.1 million shares that could hit the market for trading and has weighed heavily on the stock since it went public.
The stock has not seen the sunny side of it’s IPO price since the first day of trading . This is the first of a series of expirations that could result in almost 2-billion shares being released to the public over the next two years.
The smart money has for sometime become very skeptical of Facebook’s long term prospects ,thinking the huge social media site maybe well past it peak. With sky high exceptions there is no place to go but down .Leading to an old Wall Street adage , “if it cant get any better than this it can only get worse ” .
Various sources were used to compile information for this post ; Bloomberg News, Yahoo Finance and AP .