Facebook’s stock falls below $30 for first time
ASSOCIATED PRESS May 29, 2012 12:24PM
In this May 16, 2012 photo, the Facebook logo is displayed on an iPad in Philadelphia. Facebook's stock has fallen below $30 for the first time. That's down 20 percent since its stock began trading publicly on May 18, following one of the most anticipated stock offerings in history. (AP Photo/Matt Rourke)
Here’s how Facebook’s stock has traded since the IPO:
†Friday, May 18: Closed at $38.23, up 0.6 percent from IPO price.
†Monday, May 21: Closed at $34.03, down 11 percent for the day, down 10 percent from IPO price
†Tuesday, May 22: Closed at $31, down 8.9 percent for the day, down 19 percent for the week, down 18 percent from IPO price
†Wednesday, May 23: Closed at $32, up 3.2 percent for the day, down 16 percent for the week, down 16 percent from IPO price
†Thursday, May 24: Closed at $33.03, up 3.2 percent for the day, down 14 percent for the week, down 13 percent from IPO price
†Friday, May 25: Closed at $31.91, down 3.4 percent for the day, down 17 percent for the week, down 16 percent from IPO price
†Tuesday, May 29: Closed at $28.84, down 9.6 percent for the day, down 9.6 percent for the week, down 24 percent from IPO price.
Updated: July 3, 2012 12:29PM
Facebook’s stock closed below $29 for the first time since its much-awaited public debut this month.
The stock fell $3.07, or 9.6 percent, to close at $28.84 on Tuesday. That’s down 24 percent since its public stock debut. It went as low as $28.65 earlier in the day. This on a day when investors shook off bad news, including worries about Spain’s debt, to focus on hopes that China will rev up its economy. The Dow Jones industrial average jumped 125.86 points, or 1 percent, to close at 12,580.69.
Facebook Inc. began trading publicly on May 18 following one of the most anticipated stock offerings in history.
The site, which was born in a Harvard dorm room eight years ago and has grown into a worldwide network of almost a billion people, was supposed to offer proof that social media is a viable business and more than a passing fad.
Facebook’s initial public offering of stock priced at $38 and raised $16 billion for Facebook and some of its early investors. It had valued the company at $104 billion.
With the latest drop, Facebook’s value is about $79 billion.
But the stock’s public debut was marred by technical glitches at the Nasdaq Stock Market that delayed trading.
And the company, along with the investment banks that led the IPO, is the subject of at least two shareholder lawsuits. They allege that analysts at the large underwriting investment banks cut their financial forecasts for Facebook just before the IPO and told only a handful of clients. Morgan Stanley has declined to comment. Facebook calls the lawsuits “without merit.”