Facebook Inc (NASDAQ:FB) was the most highly anticipated IPO since Google Inc (NASDAQ:GOOG) went public in September 2004. Well, as we all know by now, FB stock was a flop and is still selling off from its IPO debut. The stock traded as high as $45.00 a share when it came public before closing at $38.00 share which was the offering price.
Today, FB stock is trading lower by $1.29 to $19.91 a share. Should the stock close below the important psychological $20.00 level there should be further downside. Many investors are selling the stock today because of all the new shares that are coming to market today, however, the market has already baked a lot of the Facebook lockup expiration into the cake. Markets are very efficient and always look forward into the future.
This tells us that Facebook stock might finally start to firm up soon. Traders should watch the $18.30, and $16.00 levels as attractive support areas should the stock decline further. A safe play for this stock is to simply allow it to form a good technical chart bottoming pattern before buying this stock. At this time, that pattern has not yet formed, however, at some point in time it will.
Some other leading internet stocks that have suffered in 2012 include Zynga Inc (NASDAQ:ZNGA), Groupon Inc (NASDAQ:GRPN), Pandora Media Inc (NYSE:P) to name a few. All of these stocks look just a bad as FB stock at this time.