Facebook shares have hit a record low after a “lock-up” period that prevented some insiders from selling their stakes came to an end.
Shares in the social media network plunged to a session low of $19.69 in New York, almost half their listing price of $38. They hit a high of $45 on the first day of dealing.
Meanwhile, investors have been concerned about the way the company could monetise it mobile application. Facebook’s pre-IPO document said that: “We do not directly generate any meaningful revenue from mobile, and our ability to do so successfully is unproven.”
There are also concerns that the company cannot continue to grow its new users at its previous expansion rate, especially since it was revealed two weeks ago that 83m accounts on the social network were fake. These included duplicate profiles, spam accounts and pages for users’ pets.
The shares were down $1.03, or 5pc, at $20.17 in late trading.
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