[Infowarrior] - Facebook? Faceplant!

[Richard Forno]

Facebook Shares Fall Below IPO Offering Price
CNBC.com
| 21 May 2012 | 09:47 AM ET

http://www.cnbc.com/id/47503280

Facebook shares fell more than 13 percent, falling below its $38 price of its initial public offering, in the social network's second day of trading as a public company.

Meanwhile, the NASDAQ exchange continued to defend itself regarding the IPO's delay on Friday.

The company's shares last traded down more than 13 percent. The stock had previously closed 0.6 percent higher on Friday.

Investors and technology industry watchers are closely tracking the Menlo Park, Calif., company's shares. The world's largest social network was one of the most anticipated initial public stock offerings ever, and now serves as a bellwether for other social media companies.

Facebook's market debut Friday suffered some hiccups, with trading on the Nasdaq delayed for a half hour and issues with traders' orders. The stock closed Friday just 23 cents above where it priced Thursday night, when many investors had hoped for a big first-day pop.

Facebook shares fell below the offer price Monday before the market's open. It was unclear at that time whether underwriters such as Morgan Stanley would step in to help stabilize the stock.

In a release, NASDAQ explained why the start of Facebook's trading was delayed on Friday. The company's CEO shed further light on the delay in an interview on Sunday with CNBC's Maria Bartiromo.

"After the calculation of the FB IPO Cross was completed, but before printing the opening trade, additional order modifications were received by the system, changing the auction order book," the release said.

To factor in the new book state, the system then recalculated the offer's auction. This caused further delay.

"Again, changes were received before the IPO cross could print the opening trade, which resulted in additional re-calculations," NASDAQ  said. "This condition persisted, resulting in further delay of the opening print."

-AP contributed to this report.

© 2012 CNBC.com
URL: http://www.cnbc.com/id/47503280/

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Just because i'm near the punchbowl doesn't mean I'm also drinking from it.