Facebook shares drop ?

It is not good news for Facebook. Their shares fell and forced Morgan Stanley to defend the $38 price level by purchasing shares on the open market. The shares were down to $37.02 in trading before Wall Street opens. Those who bought Facebook shares on Friday will face an anxious few day. The shares may also be hit by Europe’s deepening debt crisis which sent investor for less risky investment in recent days.
Even after build hype for their shares, it just 0.6pc higher at $38.23 on first day’s trading on New York’s Nasdaq. Facebook and its banker raised the number of shares last week and sell 421m and eventually sold them at $38. It helped Facebook and the early investment get company pocket $16bm but analyst say it was an aggressive strategy that now leaves the shares vulnerable.

“Facebook shares will drift lower from here,” said Michael Pachter, an analyst at Wedbush Securities. “$16bn of shares in one company was too much for the market to absorb on one day.”

Source :- Telegraph

In my opinion, it’s too early to predict. Maybe after a months, we will see the progress of Facebook IPO. For those investor, just wait and see.

Facebook initial public offering (IPO) drop by 16 percent in the share. Individual that want

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