STOCK MARKET WATCH -- Monday, 21 May 2012

[Fuddnik]

77. After Facebook IPO debacle, finger-pointing begins

Sit on my Facebook. On second thought, don't.

http://marketday.msnbc.msn.com/_news/2012/05/21/11795748-after-facebook-ipo-debacle-finger-pointing-begins?lite


By msnbc.com staff

Facebook stock's slide continued Monday, leaving some investors wondering about the outlook for the newly public social network.

Facebook's stock tumbled below its $38 IPO price on its second day of trading. By Monday afternoon the company’s share price was down 10 percent from Friday’s closing price of $38.23. (You can track the performance of Facebook’s stock price here.)

When a stock falls below its offer price so soon after an IPO it is considered a disappointment for the company, particularly when the IPO is the most heavily traded ever and concerns such a high profile company.

A number of reasons for the stock decline were offered by observers. Some pointed to underwriters offering too many shares, while others blamed an overly strong IPO price and worries about slowing revenue growth at the social network.

Investors and technology industry watchers are closely tracking the Menlo Park, Calif.-based company's shares. Facebook's initial public offering was one of the most anticipated ever and now serves as a bellwether for other social media companies.