Facebook’s stock took a hit on Thursday as a lock-up period expired, freeing up millions of shares held by early investors and employees. The increased availability of shares led to a surge in supply, putting downward pressure on the stock price.

Impact on Stock Price

The stock closed at a new low, reflecting investor anxiety about the potential dilution of their holdings. The lock-up expiration had been anticipated for some time, but the actual impact on the market was still significant.

Analyst Commentary

Analysts noted that the increased volume of shares available for trading could continue to weigh on the stock in the short term. However, they also emphasized that the long-term prospects for Facebook remain positive, citing the company’s strong user base and potential for future growth.

Looking Ahead

The market will be closely watching how Facebook manages the increased share supply and how investors react in the coming weeks. The company’s performance and future announcements will be crucial in shaping investor sentiment and the stock’s trajectory.