Facebook stock rebounds after dropping below $19
The Associated Press August 20, 2012 12:36PM
FILE- In this Monday May 21, 2012, file photo, television correspondent Sabrina Quagliozzi reports from inside the Nasdaq MarketSite in New York's Times Square. Facebook's beleaguered stock has lost more than half of its value since its initial public offering three months ago. Facebook Inc.'s stock slid 7 cents to $18.98 in morning trading Monday, Aug. 20, 2012. (AP Photo/Richard Drew)
Updated: August 20, 2012 12:36PM
NEW YORK (AP) — Facebook’s beleaguered stock got an afternoon boost after hitting its lowest level ever earlier in the day.
Facebook Inc. hit a new low of $18.75 before bouncing back to $19.86 in afternoon trading Monday. That’s up 81 cents, or 2.3 percent, for the day.
The social networking icon’s much-anticipated IPO turned sour amid technical problems on the Nasdaq stock market and high expectations. The stock has not surpassed its $38 IPO price since its first trading day.
Investors are worried about Facebook’s ability to grow revenue quickly, especially through mobile advertising as users flock to smartphones and tablet computers. There are also looming expirations of the IPO lock-up periods. Lockups preventing many Facebook employees from selling stock expire this fall, potentially flooding the market with more shares.