What is the reason for the collapse of Facebook shares
The social network Facebook is one of the most popular around the world. Daily the number of users increases, and the project management meets them halfway, offering new services and additions. It would seem that the value of the shares of this social network should grow by leaps and bounds, but this is not the case.
The ups and downs of Facebook shares have happened before, but on August 16, something that had never happened in the company's history happened - the shares at the Nasdaq auction fell almost 7 percent. For comparison, in mid-May each share was sold on world stock exchanges at $ 37-38 per share.
One of the main reasons for the fall of analysts called the fact that it was on August 16 that the agreement expired, during which some owners were forbidden to sell Facebook securities. This condition, Mark Zuckerberg’s company, supplied investors in order to support its shares after an IPO. Particularly accepted is the fact that during the IPO, far fewer shares were sold than were offered for sale in August.
According to analysts, it is unlikely that investors will take advantage of their newly acquired right to sell social network securities, since it is much more reasonable to wait for a new rise in prices for Facebook shares. According to American business observers, Facebook expects two more stages of "defrosting" securities: in mid-October and November. The latter, according to investors' expectations, will be much larger than the previous ones and will cause an even more dramatic collapse in stock prices.
Facebook posted its shares on the Nasdaq in mid-May, receiving an amount of $ 16 billion on the very first day of trading. But the next day, the value of the securities of this social network began to decline. As a result, over the three months of trading, it fell almost twice - by 48, 4 percent.