For the second day in a row, Facebook's share prices have plunged according to Reuters. The first day of trading went by with a unexciting flat price of $38 a share, then Monday brought a 11 percent plunge, followed by another 8 percent plunge down to just $31.28 a share.
In the days leading up to the opening day of trading, underwriters Morgan Stanley reportedly cut their revenue forecasts, information which may not have reached most investors before Mark Zuckerberg listed the company on Friday. Additionally, JPMorgan Chase and Goldman Sachs who are also underwriters cut their forecasts during the opening show.
The Financial Industry Regulatory Authority (FINRA) said today that "the allegations, if true, are a matter of regulatory concern." Reuters pointed out that many still believe that Facebook stock is overvalued, though, stating that "Monday's closing price of $34.03 implied a 24 percent annual growth rate for Facebook earnings over the next 10 years -- a rate that would rank above 90 percent of the companies in that industry."
Despite the controversy, Nasdaq Chief Executive Bob Greifeld said today "while clearly we had mistakes in the Facebook listing, we still want to highlight the fact that it was the largest IPO ever and on Friday of last week, we processed over 570 million shares,"