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Facebook stock falls below half its IPO price

August 20, 2012|By Salvador Rodriguez
  • The Nasdaq board in New York's Times Square advertises Facebook.
The Nasdaq board in New York's Times Square advertises Facebook. (Spencer Platt/Getty Images )

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.

FB Chart

FB data by YCharts


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