Monday, May 21, 2012

Why Facebook's stock is tanking




Facebook was all over the Nasdaq on Friday, but in a disappointing way.


(Credit: Sarah Tew/CNET)

Well, the euphoria over Facebook didn't last long, did it?


I would guess that the enthusiasm over Facebook's stock lasted a few minutes into its first-day trading session, when it ended with a rare $45 order that many believe was more of a fluke than a true indication of demand.


Since then, reality has taken hold. The stock opened with a thud, and is down more than 12 percent to $33.56, a sobering reality for anyone caught with Facebook shares on Friday, when it closed just above its offering price of $38.


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