NEW YORK – The shares of Facebook closed Monday with a decrease of 10.99% to 34.03 dollars per title, just two days after they made their market debut last Friday in an initial public offering price which established the $38 mark on the stock.
In return, Apple shares advanced 5.82% to close at 561.28 dollars, registering its biggest percentage gain since April 25 and propping up the Nasdaq.
“Right now, Facebook is not up to expectations,” said Frank Lesh, futures analyst with FuturePath Trading LLC in Chicago, adding that some people might have decided to stay out and buy the stock when it drops.
“Look at their valuation. It might have indicated ‘buy’ to some people, but man, it was too expensive,” he said.
Losses in the price erased about 19 million in market capitalization of the company, not far from the amount that assessed the personal fortunes of the company’s chief executive the time of the debut.
“One of the things we see on Facebook is that many of its operations are guided by emotions, since the weekend in much of the coverage was negative, and that could be weighing on investors’ decisions to dispose of the action,” said JJ Kinahan, chief derivatives strategist at TD Ameritrade.