Facebook's stock continues to fall on second day since IPO
21st May 2012 | 20:51
After opening high last Friday, Facebook's stock has fallen more than 10 percent
Facebook's second day of public trading has seen the social networking giant's shares continue to plummet.
Facebook went public last Friday, and though the stock opened strong around $42 (£26) ($4 (£5) over the initial price of $38 (£24)), it ended on a weak note ($38.23, only 23 cents over the IPO) by the time the bell sounded on Wall Street.
Today marks day two of Facebook's trades, and the price has continued to fall. By early afternoon it had fallen to $33.81 (£21), more than 11 percent below the IPO.
At the closing bell, Facebook's stock was sitting at $34.03, 10.99 percent below the initial asking price.
A bad omen or simply settling?
Facebook's plunging stock shouldn't necessarily come as a surprise, as the company is still settling into the market and its worth is guaranteed to fluctuate.
Wedbush analyst Michael Pachter told TechRadar last Friday that the initial rise and fall of Facebook's stock "doesn't have anything to do with what the company's worth."
"It'll find an equilibrium price in the next week or two," he said. "I have a buy rating and a $44(£27) target, and I'm standing by it."
Problems on Wall Street
The Nasdaq admitted Sunday that there were some technically hiccups on Facebook's opening day of trades.
Large and small investors reported errors preventing their trades from going through, claiming those errors led to financial losses.
The Nasdaq is recreating those trades to determine who will require compensation.