Social media giant sees bad second day
Facebook stock dropped 13 percent on its second day of being traded. It opened its public offering at $42 but is currently at $34.43 as of this writing.
The Facebook stock was initially set to open at $38 dollars, setting a record value of $104 billion. Facebook’s stock also broke another record with having the most shares traded in a single day with 581 million.
The question of why the slump in price is currently the main focus point.
“Investors are clearly recognizing the risks embedded in the stock,” said Brian Wieser, an analyst at Pivotal Research Group LLC. “It’s just been priced for perfection at the IPO price, and that’s clearly unrealistic.”
With having 900 million users and being the world’s largest provider of online ad data, it’s slightly shocking that the facebook stock has plummeted so quickly.
The drop is also partly due to what Nasdaq OMX Group Inc. Chief Executive Officer Robert Greifeld calls “poor design” in software. There were complications with customers submitting cancelations and updating existing orders, which forced the Nasdaq system to continually repeat. Thus, many were unable to purchase the stock.
On top of the Facebook stock drop, Mark Zuckerberg also tied the knot with his long-time girlfriend Priscilla Chan. The couple has apparently dated been dating for the last night years and held their wedding in Zuckerberg’s backyard.
The two met when they were sophomores at Harvard around the same time Zuckerberg started to create Facebook.
With the Facebook stock rapid decline, investors who were unable to by because of the software glitch must be feeling pretty good right now.