Stock price of social networking giant Facebook witnessed all-time low of USD 19.69 as the lockup expiration allowed investors to offload their stake. The social networking major has been under pressure and investors have already lost big money by betting on its IPO.
The stock price tumbled as more than 271 million shares became eligible for sale. The company’s valuation has already declined to 43 billion. The stock has touched 52-week high and low of 45 and 19.69 respectively.
Other social media stocks including Zynga, Groupon, Yelp and LinkedIn also lost ground. Facebook has burnt investors as the stock has been sliding after its IPO pricing of $38.
Market experts have doubts about the performance of the company in upcoming quarters. The growth of social network has also stagnated. The bigger issue for Facebook is to convert its userbase into revenue for the company. The company mainly generates its revenue from advertising on its website. Facebook reported lower than expected results in second quarter as the costs were higher and advertising revenue growth was slow.
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