After closing yesterday at $20.88 a share, Facebook stock made history today. For the first time since the company went public back in May, the price of a Facebook share dipped below $20.
Earlier this afternoon, the price hit $19.82, which is barely half of the $38 at which the stock debuted. Save a few resurgences, the stock price has been in free-fall since Zuckerberg rang the opening bell and the company went public.
For the last hour, the price has been hovering around the $20 mark, shifting a few cents here and there:
The Wall Street Journal says that over the month of June, 21 different Fidelity funds sold off over 1.9 million public shares of Facebook stock. “To be sure, the sales represent a very small portion of the funds’ holdings. Also, 13 Fidelity funds bought 2.2 million shares of Facebook in June, though more than 1.3 million of those went to index funds, which passively track established stock indexes,” says the WSJ.
Still, it’s clear the confidence in Facebook’s ability hit a home run for investors is falling rapidly. By their own admission, Facebook must successfully learn to monetize mobile, something that they are currently working on with a renewed focus on creative ad strategies.
Just last week, Facebook reported their first earnings post-IPO. Although the company saw $1.18 billion in revenue, it was a loss (even though it beat expectations).