Today, Facebook's stock fell to a price that is all time low since its
IPO, clsoing today at a price of $19.87. Today, 271.1 million shares that were locked up with
insiders and institutional investors were freed up for sale and many of those induviduals decided to go ahead and sell those shares. There are even more
concerns since a lock up on 243 million shares will be removed on mid October
and 1.2 billion shares will be freed up on November. Many analysts are
expecting a huge sell off in the next couple of months of facebook shares and some say that the stock can fall to a single digit figure by the end of the year. The
company has received some major criticism for its lack of ability to generate
significant amount of revenues via its mobile app. The company also said
earlier this week that it’s testing a service that lets companies put more ads
on mobile phones and it would be very interesting to see whether facebook would
be able to monetize its large mobile user base as that is the big question in facebook's growth prospects.
http://www.bloomberg.com/news/2012-08-16/facebook-freeing-60-percent-more-shares-seen-weighing-on-stock.html
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