Following its highly anticipated IPO on Friday, Facebook shares sank steadily throughout Monday to $34.34 in the afternoon, a 10% decline from its closing price on Friday.
During the opening hours of Monday trading, the share price fell as low as $33.73. Though the trading volume was massive, falling share prices left some investors down as much as 25%.
Many in the PR world suspect the brand will succeed in the long term, but trading thus far has not necessarily provided strong early evidence to support that. Lead underwriter Morgan Stanley purchased shares on Friday to raise the stock's price to $38, to avoid closing the day with stocks trading below the offering price.
Some attribute the share price decline to emotional trading fueled by negative news coverage throughout the weekend, as well as a technical glitch known as a race condition that left NASDAQ saying it planned to change its IPO procedures.
NASDAQ CEO Robert Greifeld said he was embarrassed by the technical issues, and the stock exchange has brought in federal regulators to look into the problems that occurred when trading opened on Friday. The glitch left some investors unable to acquire the stock at the desired price.
Greifeld has spoken out, saying investors shouldn't have expected that all trades could be made.
Still, numerous brokers are seeking compensation from NASDAQ to make up for losses from Friday's “mishandled” situation.