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The next test for the stock could come soon. Over 1.6 billion shares will be eligible to come on the market in several waves, starting on Thursday, when a number of shareholders are allowed to sell. Investors may fear that an influx of shares could cause prices to fall even more.
It becomes a company perceived as vulnerable rather than invincible, said David B. Yoffie, a Harvard Business School professor who sits on several technology company boards, though none that relate to or compete with Facebook.
joined:Nov 11, 2000
SAN FRANCISCO (AP) Facebook's stock plunged to a new low Thursday as some of the social networking leader's early backers got their first chance to sell their shares since the company's initial public offering went awry....
...Given that most of these investors put their money into Facebook five to eight years ago, they probably were eager to sell, said Sam Hamadeh, CEO of PrivCo, which researches privately held companies.
...Hamadeh believes the venture capitalists who invested in Facebook realize it's a "fool's game" to wait for a better price on the stock....
The drop today was down "more than 6 percent"... which is less than 10.