Relentlessly gloomy reports about the health of the world economy rocked Wall Street on Thursday, with San Ramon-based Chevron among the Dow’s leading decliners.
It’s been a month since Facebook’s IPO fell flat and in that time, the market for initial public offerings has collapsed.
The stock increased $1.40, or 4.7 percent, to close Monday at $31.41. That’s still down 17 percent from Facebook’s IPO price of $38. Facebook began trading on May 18.
The Nasdaq stock exchange tried to make amends with investors ensnared by technical problems on the day Facebook went public.
The stock fell $1.03, or 3.8 percent, to close Tuesday at $25.87. It’s 32 percent below its initial public offering price of $38. It’s the stock’s lowest closing price to date. Earlier Tuesday, it went as low as $25.75.
Shares of Facebook Inc. slid 82 cents to close at $26.90, after briefly trading as low as $26.44. The previous low for the closing price was $27.72, on Friday.
Regulators are examining whether Morgan Stanley, the investment bank that shepherded Facebook through its highly publicized stock offering last week, selectively informed clients of an analyst’s negative report about the company before the stock started trading.
After the social network’s stock fizzled on Friday in its long-awaited debut, its stock fell 11 percent on Monday, even as the rest of the stock market rallied.
Now, even as investors take a stake in Facebook, its future remains contingent on a leader who is reluctant to reveal himself.
Already expected to be the largest-ever initial public offering for an Internet company, Facebook is making its IPO even bigger.