Facebook Is Trading Like It's $19.99
NEW YORK (TheStreet) -- "30 is the new 20," the saying goes. It seems to be the case for Facebook (FB), which reached a new 52-week low in Thursday trading. In fact, Facebook was trading "like it's $19.99," literally, even lower, actually.
Since going public at $38 per share in May, Facebook has lost almost 50% of its value. Plagued by IPO problems, weakening revenue growth, and concern over whether social media is a fad or a sustainable business model, Facebook and its shareholders have witnessed the evaporation of roughly $60 billion in market capitalization.
The stock has also been hit by news that mutual fund giant Fidelity Investments, a large institutional investor in Facebook, has sold a significant stake. The Wall Street Journal, citing data from mutual fund tracker Morningstar, reported that twenty-one Fidelity funds sold more than 1.9 million shares of Facebook in June, with sixteen of them selling more than 25% of their stakes.
It is unusual for a mutual fund company to flip shares of a holding so soon after going public. The median holding period for a stock is 22 months, The Wall Street Journal noted, citing Morningstar data.
Shares of Facebook dipped below the $20 level in midday trading on Thursday, falling as low as $19.91, the new all-time low share price for the social network. Interested in more on Facebook? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_BullSelect the service that is right for you!
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