Facebook’s stock price (NASDAQ:FB) took a nosedive this morning after opening slightly higher from yesterday’s close. The stock price opened at 20.08 but quickly started dropping, hitting a new low just 30 minutes after the market opened.
This comes just one day after the lockups on Facebook’s stock expired, allowing those who invested at the IPO to dump their shares. This caused heavy trading at the beginning of the day, plunging Facebook’s stock to all-time lows. About 271 million shares hit the open market from such early investors as Microsoft, Accel Partners, Tiger Global Management, Goldman Sachs and Peter Thiel.
As of this post’s writing, a mere hour after the market opened, Facebook is trading around 19.25 a share. This is a far cry from the stock’s IPO price of $42 back in May. Worse yet, at least for the initial investors, the downward trend doesn’t seem to be slowing.
So what should Facebook do? Read Josh Constine’s thoughts: Stay The Course, Facebook. Even If Your Share Price Crashes
Facebook is the world’s largest social network, with over 1 billion monthly active users. Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a Facebook network. Zuckerberg immediately recruited his friends Dustin Moskovitz, Chris Hughes, and Eduardo Saverin to help build Facebook, and within four months, Facebook added 30 more college networks. The original...