Facebook shares fell more than 10 per cent in early action today, well below the initial public offering (IPO) price of $38, giving a black eye to those involved with the social networking company’s highly-anticipated debut in just the second day of trading.
Facebook sank from the opening and ended the day down 11 per cent at $34.03. It is usually considered disappointing for a new stock to fall below its offer price so quickly, especially in the case of the most heavily traded IPO of all time.
I’m no expert in stocks. If I was, well I’d be rich. But to my logic, Facebook is as big as it’s going to get. The only way is down from here. So buying stocks now seems like a dumb idea. Am I wrong to think this? Anyone out there know better? School me in the comments.