FB Stock Woes: Facebook Shares Tumble, Top Execs Jump Ship
Facebook shares continued their free-fall on Thursday, as it was known that two of the social network’s top executives – Katie Mitic and Ethan Beard – said they’re leaving the company in order to pursuit other ventures. Their exit exacerbates the company’s dimmed prospects in the second quarter as sales and user expansion slowed down.
Facebook (FB) stock hit a new low by trading under below $20 ($19.82) on Thursday afternoon, almost 50% percent below its mid-May debut price of $38. This is the lowest the controversial stock has been traded for since its highly anticipated (and botched) IPO, and it's cause of concern for investors and the tech sector at large -- as it has erased Facebook’s earlier “comeback,” when the stock had regained some of its value with news about the company’s upcoming advertising tools.
Furthermore, the social network’s prospects may worsen as Facebook's first tier of lock-up restrictions will end on August 16 – when about 271 million shares will be available for trading, with another 243 million shares set to become available for trading between mid-October and mid-November.
These dim prospects are, perhaps, what it’s causing institutional investors – such as Fidelity – to dump their shares in another indication that the rocky road is not over for Facebook.