Some honeymoon! The social network's stock closed down 10 percent
Mark Zuckerberg may have tied the knot with girlfriend of nine years, Priscilla Chan, over the weekend, but Wall Street isn't allowing his newly public company much of a honeymoon.
Facebook shares plunged below their initial public offering price of $38 on Monday in what was generally a strong day for the stock market.
The social network's stock fell over 10 percent to close the day at $34.03 and continued to fall in after-hours trading.
In contrast, the Nasdaq, the exchange on which Facebook trades, was up 2.2 percent on Monday, while the Dow rose 0.9 percent and the S&P 500 jumped 1.4 percent.
Analysts and market-watchers have been falling over themselves trying to explain why Facebook did not pop in its market debut. In particular, a lot of attention has focused on malfunctioning IPO technology that delayed trading of shares for half an hour on Friday.
Reports also surfaced on Bloomberg that Facebook's opening day might have been worse had its underwriters not stepped and purchased the company’s stock to keep it from falling below $38 a share during it Nasdaq premiere.
Not everyone was piling on Facebook in the wake of its lackluster IPO. Noting that Amazon had a similarly disappointing IPO, Business Insider's Henry Blodget argues that Facebook is in it for the long haul.
"Bankers and investors and the media wailed and gnashed their teeth and hurled insults at Amazon—Amazon was a 'broken IPO!,' Blodget writes. "But Jeff Bezos shrugged. And he used the additional money that the company raised on the IPO (instead of giving it to short-term stock flippers) to build a great company…And that's exactly the opportunity that folks who believe in Facebook's long-term vision now have."
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