For the last ten days, Facebook stock has hovered between $19.10 and $19.50 a share. In fact, the last time that it closed over $20 was exactly ten days ago, when it closed at $20.01 – up 5% from the previous day.
Although Facebook stock has been on a steady decline since their May IPO, the price really took a pounding exactly two weeks ago when the “lockup” period ended. When Facebook went public, their IPO included a lockup agreement that forced some shareholders to hold their stock for a given amount of time. And when that lockup expired, stock plunged under $20 for the first time.
And although the price has yet to close under $19, it has dipped its toes in that water.
And today it opened at $19.10, just barely above 50% of the initial offering on May 18th, which was $38.
It’s not just Facebook that’s affected by their falling stock. Yesterday, the California Department of Corporations approved the company’s deal with Instagram, meaning that the deal has cleared its final hurdle (the FTC ended its investigation last week). The initial deal was valued at $1 billion, but only $300 million was in cash. The rest was comprised of nearly 23 million shares of Facebook stock. Now, with its current price, the Facebook/Instagram deal looks to be closer to $750 million.
Facebook CEO Mark Zuckerberg has admitted that watching the stock underperform has been “painful.” He’s also said that he thinks Facebook’s ““plans and investments will pay off in the long term.”
But hey, if you really care about Zuckerberg and Facebook’s falling stock price, you can help him keep his coins with this new flash game.
Here’s a visual that looks at Facebook’s stock price from the first day on the market to today. Yikes: