Facebook shares fall 12% in early trades
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Shares in social media giant Facebook have fallen by 12 per cent in early trades meaning the stock has now dropped below its opening share price of $38.
The stock price has fallen to $33.64 in early trading in New York.
Facebook raised $16bn in its initial public offering on Friday, the shares rose over 10 per cent at their opening on Friday but have continued to fall since then.
According to the FT, Morgan Stanley, which is acting as the IPOs chief underwriter, stepped in to prevent the price from falling further throughout the day and the share price closed at $38.23 on Friday.
There was a delay to the opening of the Facebook IPO on Friday due to a series of technical glitches at Nasdaq, the stock exchange on which the company floated.
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Readers' comments (3)
Anonymous | 21 May 2012 4:51 pm
The Facebook IPO was an example of hype over investor common sense. Luckily, common sense has prevailed. Why would you invest in a company that produces nothing of value and is notign more than a fickle address book ?
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We're all doomed!! | 22 May 2012 9:09 am
Yes, anon - an address book with around 800m active users, with the ability to attract massive advertising revenue on the back of that. Sounds like a pretty impressive proposition to me!
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JB | 22 May 2012 10:42 am
A valuation of $125 per "active user" doesn't sound like an impressive proposition to me!
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