Facebook stock opens with a thud, ends down 11 percent
The world's largest social network watched its shares plummet today, the first after its IPO. The stock closes at $34.03, a sizable drop for the fervently anticipated stock.
Last update: 1:38 p.m. PT
So, it looks like investors are not too happy with Facebook today.
The company's shares plummeted in early trading, hitting a low of $33, down some 13 percent, shortly after the opening bell. By the end of the day, they had recovered slightly to close out at $34.03, down 11 percent for the first full day of post-IPO trading.
The poor performance puts Facebook much lower than its $38 initial offering price and its Friday close at $38.23. The humongous social network made its attention-grabbing stock market debut Friday.
The writing appeared to be on the wall this morning when Facebook started trading below $38 in pre-market trading. Ahead of that,.
Apparent soft demand for Facebook shares has sparked some fear among investors and industry observers over whether the social network was priced too high at its start. However, more long-term thinkers would say it's too early to get paranoid about Facebook's shares or the prospects for long-term success.
Wedbush analyst Michael Pachter is among many who believe Facebook will see its shares rise in the coming months. In a note to investors today, he said that he expects the social network's stock to jump to $44 in the next 12 months. Sterne Agee analyst Arvind Bhatia said earlier this month that he expects the company's shares to increase to $46 over the next year.
Update note: Added the closing price for the day.