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May 18th, 2012
07:50 PM ET

Explaining the Facebook faceplant

After all the hype and all the high expectations, how to explain the Facebook faceplant on the first day of trading?

Facebook's stock slid below its offering price in morning trading on Monday and stayed below that level, following a lackluster debut day.

FACEBOOK STOCK FALLS BELOW IPO PRICE

Facebook (FB) fell as low as $33 in the first half-hour of trade, but it was holding around $34.40 at 3 p.m. ET. That's about a 10% drop from Friday's $38.23 closing price.

Though Facebook was one of the most highly anticipated initial public offerings in recent memory, the stock closed with a gain of just 23 cents on Friday after trading was delayed.

Shares barely breached $42 at their peak on Friday - which came at the start of trading - and spent most of the day floating between $40 and $42 each.

FULL POST


Filed under: Economy • Tech
soundoff (One Response)
  1. Marcelino Gonzalez II

    FB came in late to the market. That could be one reason. Smart move on their part. Maybe some people couldn't invest in time cause it was their payday and they couldn't but their shares in time. By the time their funds cleared, the market was closed. Tomorrow, we will see a big difference. Another reason could be that with FB being new to the market, investors aren't sure now which way to go with these FB shares.

    May 20, 2012 at 4:16 am | Reply

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