Facebook shares edge up after hitting new low

Reuters News
Posted: Aug 20, 2012 12:33 PM
Facebook shares edge up after hitting new low

NEW YORK (Reuters) - Shares of Facebook <FB.O> edged up 2.3 percent to $19.48 on Monday after hitting a new low of $18.75, more than 50 percent below the price they were issued at three months ago.

The stock briefly traded at $19 late on Friday, 50 percent below its issue price of $38 on May 18. The stock has been hit by worries about the company's ability to grow revenue. Also, last week, some early investors were given the go ahead to sell for the first time since the social network company's initial public offering.

"It seems to be down around levels that people who didn't like the deal thought it was really worth. And now it seems to have stabilized," said Eric Kuby, chief investment officer, North Star Investment Management Corp. in Chicago.

It may have "found a level which seems more of a better price for people valuing the company in terms of the future," he said.

(Reporting By Caroline Valetkevitch; Editing by Chizu Nomiyama)