This morning, the first tier lock-up of the company expired, meaning that 271 million shares — two-thirds of the total and more than half of the total sold in the IPO — became available for sale. The result? FB dropped to a new all-time low.
The stock fell 7% by mid-morning and hit hit an all-time low of $19.71 before making slight gains. More than 62 million shares were traded an hour into the expiration — more than twice the stock’s average daily volume the past 30 days, The Wall Street Journal reported.
The company’s has lost nearly 50% of its value since the botched May IPO. And this is just the beginning — the company also has other lock-ups expiring in October, November and December.