- Obama not worried about Ebola at upcoming African summit in D.C.
- Obama: ‘We tortured some folks’ after 9/11
- Obama administration asked whole D.C. Circuit to take on major Obamacare case
- Mark Levin: Topple GOP leadership or country will ‘unravel’
- Massachusetts to let police chief deny gun buys to those deemed unfit
- John Kerry condemns attack on Israeli soldiers, kidnapping
- U.S. starts to evacuate American Ebola patients from West Africa: Report
- Geraldo slammed as ‘dummy’ for backing Clinton’s bin Laden claim
- Israeli spokesman: No need to debate who broke the cease-fire
- 35 Palestinians killed; Israeli officer missing
Facebook hits new low as IPO lock-up ends
Question of the Day
But sentiments started to shift Thursday as the volume of shares being returned to the lenders outstripped the number being borrowed, Smith said. The cost to borrow Facebook shares also has been declining, a sign that short-selling demand is waning.
“Facebook’s stock might be finally bumping along its bottom,” Smith said.
Considering the heavy trading volume, Facebook’s stock would have fallen more dramatically if buyers hadn’t stepped in, said Louise Yamada, a technical analyst who runs her own research firm.
She suspects Facebook insiders are being careful not to flood the market with stock. “They’re smart enough to know if they sell at the same time, the stock would fall,” Yamada said.
It has been a rough run for Facebook. After one of the most-anticipated IPOs in history, Facebook had perhaps the most-botched stock market debut as glitches marred its first day of trading. Things have gotten progressively worse as Facebook’s market value has plunged by about $49 billion.
The downfall stems from doubts about Facebook’s ability to fend off intensifying competition from Internet search leader Google Inc. while trying to develop a plan for increasing the amount of revenue that it brings in from a worldwide audience of 955 million users.
The uncertainty means Facebook’s stock is likely to be volatile until the end of the year when the majority of the lockups expire. Hamadeh views the end of those selling constraints as a “dark cloud on the horizon.”
“There is no way around it. It’ll be painful,” he said. “But hopefully once that selling pressure is gone, it will find its floor and could be a basis for a more stable stock through 2013.”
AP Business Writer Bernard Condon in New York contributed to this story.
TWT Video Picks
By Orrin G. Hatch
Procedural changes impede the chamber's traditional deliberative function
- Border agents cleared of civil rights complaints from illegal immigrant children
- Ben Carson takes major step toward presidential campaign
- U.N. condemns Israel, U.S. for not sharing Iron Dome with Hamas
- Obama military strategy too weak for future security, panel reports
- Porn-surfing feds blame boredom, lack of work for misbehavior
- House GOP resurrects border bill, predicts successful Friday vote
- Feds raid S.C. home to seize Land Rover in EPA emission-control crackdown
- Ted Nugent slams 'lying freaks' at liberal media: I'm 'doing God's work'
- CRUZ: A tale of two hospitals: One in Israel, one in Gaza
- Pentagon wants extra $19M to equip, train Ukrainian troops
Top 10 U.S. military helicopters
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors