DETROIT (WWJ) – So much for one of the most heavily traded IPOs of all time: Shares of Facebook finished off about 11 percent Monday, down to $34 a share in the second day of trading for the social networking giant.
“People had been lining up for that stock for days and days ahead of time, and suddenly it cooled off, and the question is, ‘Was it General Motors saying, hey this business model worked to bring people together but it doesn’t work to get people to buy what advertisers are putting on there as far as ads are concerned,'” said WWJ and FOX 2 Business Editor Murray Feldman.
Feldman says several trading glitches on the Nasdaq exchange last Friday, including “lost trades” on Facebook shares, also didn’t help. The drop in stock prices means Facebook founder Mark Zuckerberg’s personal worth fell by $2.2 billion, according to the Washington Post.
The Dow closed up 135 points on Monday, and the Nasdaq finished up 68.