Facebook’s stock has fallen below $30 for the first time since its public launch.
It fell nearly 8 per cent, to $29.40 by midday today, which was a 23 per cent fall since its initial opening price when the company was made public on May 18 at a $38 which raised $16bn.
How the opening was plagued by technical problems at the Nasdaq Stock Market and at least two lawsuits have already been filed in relation to the public flotation.
It has been alleged that analysts at the large underwriting investment banks cut their second-quarter and full-year forecasts for Facebook just before the IPO and told only a handful of clients.
With the latest drop, Facebook’s value is about $80 billion.