Facebook's stock bounces backSeptember 5, 2012: 10:52 AM ET
Ever since Facebook went public in May, the stock has struggled to gain traction as investors worry about the social network's mobile strategy and how much pressure will come from the expiration of multiple lock-up periods (when insiders can sell their shares).
But after the market closed Tuesday, Facebook announced via an SEC filing that Zuckerberg would not sell any of his nearly 444 million shares for at least another year. He has an option for another 60 million shares, which he also won't sell for now.
The company further said it would keep 101 million of employees' shares off the market when they're eligible to be sold on October 29. Even with those shares withheld, there's still another 234 million shares that will be freed up to be sold to the public on that day. And investors continue to fear how much more pressure those additional shares will put on the already beleaguered stock.
As of Wednesday morning, the 'just how low can it go' question that's dogged Facebook's stock since its May debut has been answered temporarily at least: Tuesday's intraday low of $17.55.>
The stock bounced nearly 4% Wednesday but it's barely above $18. That's more than 50% below the $38 a share at which Facebook priced its IPO.
Groupon (GRPN), the other much-hyped social media company that's followed Facebook's ill-fated post-IPO trajectory, also hit a new all-time low Tuesday. The stock continued to drift lower early Wednesday.