News / Economy

Facebook Stock Hits New Low

Facebook stock has fallen below $20 per share -- nearly half the stock's initial selling price after its much-hyped public debut in May.  The sell-off came Thursday after the expiration of a 90-day ban that prevented early investors from selling shares of Facebook for quick profit. Despite the stock's poor performance so far, some say it's too early to give up on Facebook.

It was easily the most anticipated, most watched public offering of 2012, but just three months later, early investors couldn't get rid of their shares fast enough.

"They just threw it out there. The stock was down, six, seven percent, which says to me that the people that know the most about the company don't want to be anywhere near the shares," said Jeff Mackey, host of Yahoo Finance.

More than 270 million shares became available Thursday after selling restrictions were lifted - sending Facebook stock to a new low, and shaving about $50 billion off its market value.

But at nearly half it's $38 selling price in May, equity analyst Scott Kessler at Standard and Poor's sees a bargain.

"Ultimately we think these are going to provide a nice buying opportunity for investors because we don't necessarily see a lot of selling by insiders," Kessler said.

Others urge casual investors to be wary.  Facebook reported losses in July due to higher costs and slowing revenue. And there are new concerns about the company's leadership and its ability to attract advertising.

Yahoo's Mackey says he's taking his cue from the big investors.

"I don't want to buy what Goldman Sachs doesn't want to own cause I think they're pretty smart guys.  I want to be buying alongside them, so you know, this Facebook thing: it's time to take a pass," Mackey said.

But Kessler says it's too early to write off the Internet's number one social network.

"The reality is that we're looking for the company to grow revenues at 25 percent or more annually for 2012, 2013 and 2014," Kessler said.

For investors it's a matter of supply and demand.  About 14 percent of locked up Facebook shares were released Thursday.  More than a billion more shares are expected to hit the market in November.

You May Like

Uganda Court Annuls Anti-Gay Law

Court says law was passed in parliament without enough members present for a full quorum More

Multimedia Thailand Makes Efforts to Improve Conditions for Migrant Laborers

In Thailand, its not uncommon for parents to bring their children to work; one company, in-collaboration with other organizations, address safety concerns More

In Indonesia, Jihad Video Raises Concern

Video calls on Indonesians to join Islamic State of Iraq and the Levant, ISIL More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
In Thailand, Some Efforts to Improve Conditions For Migrant Laborersi
X
Steve Herman
August 01, 2014 6:22 PM
Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video In Thailand, Some Efforts to Improve Conditions For Migrant Laborers

Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video Public Raises its Voice on Power Plant Pollution

In the United States, proposed rules to cut pollution from the nation’s 600 coal-fired power plants are generating a heated debate. The U.S. Environmental Protection Agency, charged with writing and implementing the plan, has already received 300,000 written comments. As VOA’s Rosanne Skirble reports, another 1,600 people are lining up this week at EPA headquarters and at satellite offices around the country to give their testimony in person.
Video

Video Information War Rages Alongside Real One in Ukraine

The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict in Gaza, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities. Probably the most important destination is the local bakery. VOA’s Scott Bobb reports from Gaza City.
Video

Video China Investigates Powerful Former Security Chief

The public in China is welcoming the Communist Party's decision to investigate one of the country's once most powerful politicians, former domestic security chief Zhou Yongkang. Analysts say the move by President Xi Jinping is not only an effort to win more support for the party, but an essential step to furthering much needed economic reforms and removing those who would stand in the way of change. VOA's Bill Ide has more from Beijing.
Video

Video US-Funded Program Offers Honduran Children Alternative to Illegal Immigration

President Obama and Central American leaders recently agreed to come up with a plan to address poverty and crime in the region that is fueling the surge of young migrants trying to illegally enter the United States. VOA’s Brian Padden looks at one such program in Honduras - funded in part by the United States - which gives street kids not only food and safety but a chance for a better life without, crossing the border.
Video

Video 'Fab Lab' Igniting Revolution in Kenya

The University of Nairobi’s Science and Technology Park is banking on 3-D prototyping to spark a manufacturing revolution in the country. Lenny Ruvaga has more for from Nairobi's so-called “FabLab” for VOA.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.