NEW YORK – Facebook Inc. shares plummeted to 4% on Friday, suffering record lows of 19.04 dollars per share – about 50% less than the company’s stock values when it first debuted in the stock exchange.
Costs per share fell sharply on Thursday after one of several lock-ups on stock selling which was geared to prevent insider trading of some people with interests in the company.
The company debuted on the stock exchange in May to 38 dollars a share, giving Facebook a value as high as 100 billion dollars after its initial public offering.
More than 270 million shares were unlocked on Thursday, which is more than 50% of the 421 million shares that were sold in the initial public offering in May. It is remembered that demand for Facebook stocks skyrocketed as soon as the company behind the giant social networking site announced its intentions of entering the stock market and trading its shares.
Facebook, the largest social network in the world with more than 955 million subscribers, has seen its shares plummet on various reports and rumors about the slowdown in the growth of company revenues, not to mention the company’s inability to generate revenue through ads on its mobile platforms.