For Facebook, the third time is not proving to be a charm.
Shares of Facebook fell again on Tuesday, the social network giant’s third day as a public company, tumbling nearly 8 percent in morning trading.
At 9:54, the shares were trading at $31.46, 17 percent below the initial offer price of $38.
The continued struggles of Facebook shares in the public market are sure to turn up the heat on a number of parties. They include the Nasdaq stock market, whose technical problems on Friday marred Facebook’s first day of trading; Morgan Stanley, which led the social network’s initial public offering and has been criticized for pricing the stock too richly; and even Facebook itself.
Investors and analysts have been questioning how the company should be valued.
Richard Greenfield, an analyst with BTIG, said in a research note on Monday that Facebook’s updated prospectus, showing the number of active users growing faster than ads, hurt confidence in the I.P.O. “The timing of the disclosure, however, is peculiar at best and more likely concerning,” he wrote.
He added: “To be fair, valuing Facebook is more art than science at this stage of its development and the current state of both social and mobile advertising.”
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