The second day, the course has fallen below the IPO price from the start, losing over 10% in the day. The relationship between Wall Street and Facebook are decidedly strained. The second trading day, the social network has seen the share price hitting the stock market.
The title, which had closed at 38.23 dollars last Friday – slightly above the introductory course through the hard work of his bank Morgan Stanley – has opened at 36.66 dollars Monday. Over the hours, the decline has worsened, reaching a 13.7% decline. The title is then gradually increased and stabilized around $ 34, but still declined by about 10% over the opening.
At $ 34, the action Facebook is the limit of the two price ranges that had been proposed a few days before its IPO. First set between 28 and 35 dollars per share, it was lifted early last week to between 34 and 38 dollars. The action was finally brought to 38 dollars .
For Douglas McIntyre, an analyst for the site 24/7 Wall Street, there would be no surprise that the action Facebook falls to $ 28, price still considered by bankers social network earlier this month. Other analysts, like Enderle Group, are even lower, at a price per share between 18 and 20 dollars. For these skeptics, the prospects for revenue growth of Facebook does not in fact justify a valuation above $ 90 billion.
“When people have not seen a surge in the first day, they sell” analysis Nathan Drona for his part, Vice President in charge of research at the company ABR Investment Strategy. “This introduction should have been half as large and the action would have closed at $ 45 Friday,” said Michael Pachter, an analyst at Wedbush Securities, the Wall Street Journal , involving banks council. “This IPO is not up to its media coverage,” also found Frank Lesh, an analyst at FuturePath Trading in Chicago, who believes that purchases could be deferred.
But the action could also suffer from Facebook disdain that continues to founder for Wall Street. On the U.S. television network CNBC, a facilitator and was surprised by the timing chosen to marry Mark Zuckerberg . “It’s still a very media that he does not care about its investors,” he noted, while the young leader has married his longtime girlfriend Saturday, the day after the IPO Facebook. However, a discreet ceremony and announced on Facebook that was “like” a million users on the social network.
Worse, he donned a suit for the occasion while Mark Zuckerberg had moved east coast by appearing in a sweatshirt meeting of investors before the IPO. He also worried some observers saying the concern for the social impact of its business that its financial performance.