Facebook shares drop 4 percent, hit another low

SAN FRANCISCO Fri Aug 17, 2012 12:45pm EDT

The Facebook logo is shown at Facebook headquarters in Palo Alto, California May 26, 2010. REUTERS/Robert Galbraith

The Facebook logo is shown at Facebook headquarters in Palo Alto, California May 26, 2010.

Credit: Reuters/Robert Galbraith

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SAN FRANCISCO (Reuters) - Facebook Inc shares sank as much 4.3 percent on Friday to set a new low, a day after early investors got the green light to sell for the first time.

More than 270 million shares owned by the early investors became available for trade on Thursday after a 3-month curb on sales ended. That's more than one-half the 421 million shares sold in its initial public offering on May 18.

Facebook hit a low of $19.01 Friday morning and were down almost exactly 50 percent from the $38 offering price at its May IPO. At midday, the stock had eased to $19.15, off 3.5 percent.

Nearly 62 million shares of Facebook traded hands in the first two hours of trading on Friday.

More than 1.4 billion additional shares held by early investors and Facebook employees are set to become available for trading by year's end, adding further pressure on shares of the once high-flyer.

Facebook, the world's No. 1 Internet social network founded by Mark Zuckerberg in his Harvard University dorm room, became the only U.S. company to debut with a market value of more than $100 billion.

But investors have grown disillusioned with Facebook's inability to articulate a plan to reverse slowing revenue growth.

(Reporting By Alexei Oreskovic; editing by Jeffrey Benkoe)

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