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.
--Written by Chris Ciaccia in New York
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