Facebook Closes Lower Once Again
NEW YORK (AP) - After a brief reprieve in morning trading, Facebook's stock once again closed lower on Wednesday, nearly $10 below its initial public offering price.
Shares of Facebook Inc. dropped 65 cents, or 2.3 percent, to close at $28.19. It's the third consecutive trading day the stock has dropped from the previous close. It got some relief earlier in the day, going as high as $29.55.
Wednesday's close is down about 26 percent from the stock's IPO price of $38. Facebook began trading on the Nasdaq Stock Market on May 18. The day started with a delay due to trading market glitches and didn't get much better from there.
Still, the IPO raised $16 billion for Facebook and early investors, making it one of the largest IPOs ever. But many investors were expecting the stock to go higher on the first day. Instead, it went up less than 1 percent to $38.23 that day, before falling since then.
Wednesday was a down day for the broader market as well, with the Dow Jones industrial average closing down 161 points. Other social media stocks, such as Zynga Inc. and Yelp Inc., also headed lower.