If you have kept up with Facebook’s Initial Public Offering you should not be very surprised to hear the price to buy is down forty six percent from the opening day. Twelve weeks ago the stock opened at thirty eight dollars a share.
The team at Facebook was extremely optimistic about going public during the first week of trading. However, the companies excitement was short lived after a disappointing first week of trading.
The stock is now down to a record low twenty dollars and twenty cents per share. This is a bit uncanny for the network which currently boasts close to one billion users.
If the company stock continues to head down this negative path – Facebook will sink below fifty percent for the first time ever in just a few short weeks. Although the stock has dropped significantly from the companies opening day – some early big name investors have already cashed out.
For starters, Linkedin founder Reid Hoffman took to the hefty sum of thirty six million dollars at the IPO after investing a mere forty thousand dollars in Zuckerberg’s success early on. Peter Thiel, co founder of PayPal placed an early five hundred thousand dollar investment into the success of Facebook in 2004 and cashed out in a big way with six hundred forty million dollars at Facebook’s Initial Public Offering.
This Thursday (August 16th, 2012) will mark the first day “the company’s early investors and some of its directors will be able to sell stock they own in the social network.” “The company went public with 421 million shares as part of its original offering, and 271 million shares will be unlocked Thursday.”