The honeymoon is over for Facebook and Mark Zuckerberg. In fact, it ended before it began.
Facebook’s long-awaited and much hyped IPO is less than a week old and the blame game is on as the company has lost nearly 20% of its value since the initial offering.
After three days of trading Wall Street’s take on Facebook has gone from jubilant to jaundiced.
The stock ended its first full day of trading at $38.23 – essentially flat from its $38 opening price though it did manage to set an IPO record for the sheer volume of trades — 567 million shares on opening day last Friday. Investors hoped for a turnaround. That never materialized. On Monday, a selloff prompted the shares to fall by nearly 11%, ending at $34.03. The news worsened Tuesday. The stock sank another eight percent down trading in the $31 – $32 range.