How Low Will Facebook Shares Go? 'Lockup' Expires, Stock Plunges

[Purveyor]

Facebook shares were supposed to do the lambada, not the limbo.

Instead stock in the social networking giant, whose contortions have demoralized investors, sank to a fresh low on Thursday, losing more than $4 billion of market value after the first in a series of "lockups" expired that had kept insiders from selling their shares.

Facebook shares plunged as much as $1.49, or 7%, to $19.71 in Thursday morning trading. It’s getting close to losing half its value since its much-hyped initial public stock offering in May that put its value at $100 billion.

Facebook already had 421 million shares trading. On Thursday 271 million more became eligible to be bought and sold. If many insiders sell, that could put increased pressure on the already depressed stock. Facebook's stock is close to doubling its usual trading volume with about 84 million shares trading hands already Thursday.

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http://www.latimes.com/business/technology/la-fi-tn-how-low-will-facebook-shares-go-lockup-expires-stock-plunges-20120816,0,7503684.story

[lapfog_1]

1. Facebook faceplant - n/t

[HopeHoops]

2. I'll wait until it gets down into the single digits and then still not buy it.

[jmowreader]

3. Facebook shares would be traded on the pink sheets if there was any sense in this world

(Pink Sheets are how stocks not listed on stock exchanges are traded.)

Facebook makes its money, so far as I know, from advertising and from selling its customers' information. Google "facebook ad blockers" to see how effective the first is going to be; as far as the second goes, how many of its "users" are actually things like cats or hamburgers? And how many of them have died since subscribing, or stopped using Facebook? Do advertisers really want to market to hamburgers for much longer?

My prediction: Facebook will be delisted for dropping below the $1 minimum bid price by the end of next year.