Facebook Stock Prices Continue Plunge as More Shares to Hit the Market
Facebook stock prices - down 40% since the FB IPO - could be further hit by torrent of new shares flooding the market
MENLO PARK, CA - Mark Zuberberg - one of the founders of Facebook - lost just over $7 billion of net worth as Facebook stocks continued to plunge, down around 11% on Friday, and a whopping 40% down from initial FB IPO stock price.
Some are saying that the price of Facebook shares could fall even lower as more stock hits the market when employees are allowed to sell more stock. Facebook will allow almost 1.7 billion shares starting in August after provisions that banned employees from selling their stock begin to expire.
The LA Times reported:
About 268 million shares will be released in mid-August, an additional 192 million shares in mid-October and the largest slug — more than 1.2 billion shares — in mid-November.
Meanwhile, there may be other problems for Facebook stock on the horizon. While they still grew revenue by over 30% in the second quarter of 2012, that is down quite a bit from the growth they have experinced in the past.
Additionally, many are concerned that a lack of vision communicated to shareholders means that there is no solid plan to ramp-up advertising revenue on mobile platforms as more and more people access the Internet on their smartphones.