Facebook Shares Fall Again In Torrid Third Day Of Trading

Huffington Post UK  |  By Posted: Updated: 22/05/2012 15:23


Shares in the social network Facebook lost more than 8% in value in early trading on Tuesday.

After a difficult day on Monday, during which Mark Zuckerberg's company lost more than 11% of its value, its shares opened down again on Tuesday morning.

Trading on the Nasdaq saw it lose more than 8% before rising slightly to hover around $31.80, down 6.6% .

Facebook shares were valued at $38 each on Friday, when the company floated.

That initial public offering (IPO) valued the company at $104bn, more than Disney and McDonald's - but analysts said its shares would have fallen below their IPO price had it not been for the actions of underwriters.

Overall Facebook shares have lost 16% in value since Friday.

CEO Mark Zuckerberg, who owns 504m shares in the company, has technically lost more than $3bn in net worth over the past four days.

According to some traders the company's relatively low revenue and the tough challenges it faces in expanding the profitability of its advertising operation leave it with low prospects in the short term.

According to a Reuters report on Tuesday, analysts at Morgan Stanley cut revenue forecasts for the company just before the IPO.

That decision may have caused the shares' subsequent weak performance.

According to one investor the decision "freaked people out".

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