Facebook Inc (NASDAQ:FB) Tanked 6 pct As Investors Continued To Dump Shares

Facebook Inc(NASDAQ:FB)shares continued their downward journey for the fourth straight day on Tuesday, with the shares getting hammered down six percent to another record low.

The overhang of its June quarter results on its stock performance persisted as investors dumped shares taking its stock down to $21.77 at the day's close. The stock has depreciated about 40 percent so far since its May debut.

Can FB Shares Rebound? Get Free Trend Analysis

Despite the steep devaluation of its share price in the market, the stock still continues to trade at 47 times its forward earnings, testifying to its overinflated valuations.

The market is also bracing itself for a share deluge of 211 million shares after Aug. 16, when a post-IPO lock-in of employee shares expires.

With more shares coming into the market after mid-August analysts expect the price of the stock to slide further. The core business of the social network has been valued at just about $19 a share, with its social graph feature adding a $4 premium.

Last week, Facebook reported results but offered no outlook or forecast for the year, spooking investors who sought reassurance about growth and revenue visibility in 2012, especially mobile advertising.