Well, that was fast. Facebook opened its second day of trading at $36.66, below its initial public offering price of $38. By 10 a.m., the stock had dropped even lower, to $33.34.
The Facebook debut was one of the most highly anticipated IPOs of the year, but it failed to wow investors on Friday, closing just 32 cents above its open. The company’s bankers had to prop the stock up to keep it from going negative on its first day of trading.
After facing delays Friday, shares jumped as high as $45 per share, but hit the break-even mark several times throughout the trading day, never going negative. The delays kept traders from learning whether their investments had gone through, with some waiting for hours to learn the fate of their bids.
It’s possible that some of the cancellation orders were still coming in on Monday.
Nasdaq chief executive Bob Greifeld acknowledged Sunday that that technical problems caused delays in Facebook trading. But he told reporters that there was no indication that the glitches contributed to the stock’s poor performance and called the first day of trading “successful,” the Associated Press reported. Greifeld said that the stock exchange was “humbly embarrassed” by the glitches and that Nasdaq’s board met Saturday to discuss plans to change its IPO auction process.
The Securities and Exchange Commission said Friday that it would review the delays with Nasdaq to find the cause, The Washington Post reported.
Analysts said Friday that Facebook’s last-minute addition of millions of new shares likely contributed to the stock’s disappointing performance. They said the company should have kept to its original offering.