The stock price for social media giant Facebook fell almost 11% on the company's first full day of trading yesterday, after its initial public offering on Friday (18 May).
The stock closed on Monday at US$34.03, which was 10.99% down for the day, and was significantly below the company's US$38 initial public offering (IPO) price.
Over the weekend, multiple analysts predicted the stock would drop in value, arguing the high price was a sign of another dotcom bubble.
Yesterday, media analyst Peter Cox said the Facebook share price will “absolutely drop”. “Over time, the price will absolutely drop and it will be worth a fraction of what it is now. It will go the way of AOL and Myspace.”
The drop followed a day of ups and downs on Friday, where the stock saw early surges before dropping back to the offering price of US$38, then rising slightly to US$38.23.
Facebook was the second largest IPO in the US of all time.
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