Angie’s List shares continue their astounding free fall in the wake of last week expiration of a post-IPO lock-up period.
On August 14, all of the company’s outstanding share became freely trading. Until that time, 25.28 million of the company’s 57.76 million shares could not be traded in the open market.
The expiration of lock-up agreements is hardly a new phenomenon, but the impact of those arrangements on Web 2.0 company stock prices has been considerable in recent weeks. Angie’s List shares, in particular, are down 26% over the last five days.
What makes this sort of thing so difficult to address is that this really isn’t about fundamentals; it is about supply and demand. If you flood the market with widgets, shares or bananas, their prices will fall. That’s what’s happening with Angie List – and it is what will continue to happen to Facebook as more shares reach the market.Looking at the on-line stock market information for Angie's List,the company began its public life on November 17, 2011 with its stocks valued at $16.26. On March 28, 2012, the stock reached its zenith at $18.91. Today, the stock closed at $9.69 a share.