Facebook investors rage at 18 per cent fall after some were not told of last-minute change to key projections
Facebook’s $104bn stock market flotation descended into anger and recrimination last night, as shares in the social network slumped further in value and regulators investigated whether important information was kept hidden from some investors.
The company’s market value had fallen to $85bn by the end of trading yesterday, reducing founder Mark Zuckerberg’s stake from $19.1bn to $15.6bn and creating huge losses for investors who bought in when the stock started trading last Friday.
The shares closed at $31 last night, down 9 per cent on its third day of trading. That fall comes on top of an 11 per cent fall on Monday.
Adding to the debacle, Nasdaq, the stock exchange which listed Facebook shares, was slapped with a class action lawsuit last night on behalf of investors whose trades were not properly processed because of a software glitch on Friday.