Facebook stock hits new low as IPO lock-up ends

SAN FRANCISCO (AP) — Facebook's stock plunged to a new low today as some of the social networking leader's early backers got their first chance to sell their shares since the company's initial public offering went awry.

Analysts interpreted the unusually high trading volume as a clear sign that at least a few of the insiders were seizing on a fresh selling opportunity. That is stirring a debate over whether they're simply locking in long-awaited gains on investments made many years ago or bailing out of a company that has lost its luster.

A breakdown on just how many major Facebook Inc. shareholders sold their stock probably won't be available until next week at the earliest. Securities regulations give them at least three business days before they have to disclose such transactions.

The information is important "because if you are an investor who has been sitting on the sidelines waiting for a good time to buy the stock, you might decide to stay on the sidelines for a little longer after seeing which insiders decided to sell their stock," CapStone Investments analyst Rory Maher said.