It looks like the excitement is officially over. After one of the biggest IPO hypes ever, Facebook's stock has plunged to a new low after its IPO lockup period began to expire and additional shares were eligible for trade.
According to NASDAQ listings, yesterday Facebook's stock closed at $19.87 a share, down 6.27 percent. The IPO price was $38, but the company stock has been historically trading far lower since its mid-May debut.
The high of Thursday was just $20.48, the low, $19.69. Several media outlets report over 156 million shares traded yesterday, "more than five times the average volume," reported Los Angeles Times.
This brings CEO Mark Zuckerberg's worth down another $600 million, reported Bloomberg. His overall worth is reported to be $10.2 billion.
On Aug. 14, the first phase of Facebook's IPO lockup expired and 271 million shares became eligible this week. What this essentially means is that some of the social network's early investors are now allowed to sell shares, and this group includes names such as Goldman Sachs, Accel Partners and Greylock Partners to name a few, along with some Facebook executives.
It won't be known for several days which of these large shareholders may have traded.
“Certainly some of them sold. The question is how many of them sold and how much of their holdings they sold,” Pivotal Research analyst Brian Wieser said.
Another 243 million can flood the market on Oct. 15, and then another round of eligibility will come on Nov. 14, including Zuckerberg's shares, then another in December. One last date of eligibility will come in 2013.
“The big issue is, was and always will be November," said Wieser. This eligibility round will be one of the largest, 1.2 billion shares.
As Business Week notes, Facebook has been trying to overcome the hurdle of making money from users that access the network from mobile devices.
Over time, this will likely be a larger issue as more people go mobile. Mobile use is expected to continue to explode in terms of growth through 2016. Monetizing mobile is going to be a big piece of the pie. If Facebook cannot effectively overcome this obstacle, this could have a serious impact on its future.