Facebook stock closes nearly 50 percent below IPO
Social media giant Facebook closed its stock at $19.87 on Thursday, which is the first day the social network’s “lockup” expired for early investors, allowing them to sell their stakes. Analyst initially expected that early investors and employees would sell their shares and become millionaires or billionaires. Facebook’s stock has now fallen nearly 50 percent below its initial public offering, which was priced at $38 while stock opened at $42.05 in May.
Since its IPO on May 18, Facebook has lost about $40 billion in market value. Facebook’s IPO began as the largest tech offering in history, but it has now become the worst major IPO ever, according to Bloomberg.