Facebook Shares Plunge Below IPO Price


0  Updated at 1:42 am, May 21st, 2012 By: ABC Digital
Share This Story

Peter Foley/Bloomberg via Getty Images(NEW YORK) — Shares of Facebook plunged below its IPO price and previous close, opening down 11 percent to $33.83 on Monday morning.

Facebook stock closed at about $38.23 on Friday evening, only slightly above its IPO price of $38 a share set on Thursday night.

“Facebook is getting slammed as investors who hoped for a momentous run instead take the disappointing first day performance as a cue to flee the stock.  The price action is also more telling of what likely would have taken place Friday afternoon if Morgan Stanley hadn’t been propping up its shares above the offering price,” said Jim Krapfel, IPO analyst with investment firm Morningstar.

“There was some thought that Morgan Stanley would continue to prop up shares today but clearly the demand was too overwhelming to keep shares from falling.  The weak action clearly shows that some of the speculative froth in technology IPOs has abated, welcome news in our view,” Krapfel continued.

The IPO had some technical glitches on NASDAQ Friday morning, delaying its trading and confusing some investors who did not receive confirmation of their trades until hours later.

Copyright 2012 ABC News Radio

Stories You May Be Interested In:

City of Idaho Falls Warns Against Utility Scams

17 Aug 2017

EastIdahoNews.com staff

UPS is training drivers with virtual reality

15 Aug 2017

Matt McFarland, CNN

Gas prices on the rise ahead of solar eclipse

14 Aug 2017

Nate Eaton, EastIdahoNews.com