Facebook Falls Below IPO Price

May 21st, 2012 at 5:44 pm

Is Facebook‘s IPO not living up to the hype? It is too early to tell, but just minutes of Facebook’s third day of public trading Monday shows that it has fallen as much as 13 percent below the initial price of $38. In fact, stocks in the social network company had decreased by 3.8 percent 30 minutes before the opening bell at $36.80. Shares opened at $36.53 and dropped by as low as $33.

Analysts were surprised to say the least, seeing how Facebook’s shares in NASDAQ plummeted Friday when it opened at $42 and closed at $38.23–just 0.6 higher than the IPO price. The closing price would have been much lower had the banks that underwrote Facebook’s IPO did not step in to buy stock when shares dipped near $38.

Despite the seemingly weak start for Facebook’s public trading, the popular social network posted multiple records including the highest volume (or number of shares traded) in a company during its market debut day at about 581 million shares.

Source: San Jose Mercury News

Photo credit: Bebeto Matthews/ AP