What can $20 buy you? A share of Facebook stock. For the first time, the price of a share of the social network has dipped below $20. As of 12:45 p.m. PT Thursday, the cost had fallen all the way to $19.88.
It has been a rather precipitous fall for Facebook, which opened at $38 per share.
CNNMoney reports that price of Facebook’s stock fell all the way to $19.82 at one point:
The stock has been under pressure since last week, when Facebook reported its first earnings as a public company and failed to relieve investor worries about slowing sales growth and its plan for mobile advertising.
As Facebook’s stock continues to bleed, institutional investors are beginning to unload their stakes. Fidelity Investments, which owns both public and private shares of Facebook, sold more than 1.9 million public shares in June across 21 different mutual funds, according to Morningstar data.
The Wall Street Journal had a little more information about Fidelity’s decision to dump so much Facebook stock:
The moves represent an about-face for Fidelity, one of the first institutional investors to take a significant stake in Facebook and the country’s third-largest mutual-fund company by assets. Fidelity’s funds owned the shares for at most six weeks — much shorter than the median holding period of about 22 months for U.S. stock funds, according to Morningstar.
“Fidelity managers are known to like to buy things in order to kick the tires and ask questions,” said John Bonnanzio, editor of Fidelity Insight, a newsletter that tracks the company’s funds and that provided the data on the funds’ private Facebook purchases. “It seems they ultimately decided that they don’t like what they see.”
Readers: How low do you think Facebook’s stock will fall?
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