Facebook share's are continuing to tank, where they've started to dip below $29 per share, where at the time of writing, they're sitting at $28.19 per share. Considering they started at $38 per share, this is quite the fall from grace for the social networking company.
This drop has pushed their once $100 billion-plus valuation, down to a market cap of just $61.66 billion. This is a disaster considering the confidence in the stock pre-IPO, just over a week ago now. Traders can also now "short" Facebook shares, betting that the price will continue to fall. Sam Hamadeh, founder of analyst PrivCo, said that most of the options were "bearish" meaning that traders were betting on price falls. He also said that popular contracts were putting Facebook's share price in the mid-$20's for June and July, with PrivCo estimating Facebook shares were worth $25 ahead of the IPO.
I think we should see shares stabilize at around the mid-$20's mark, as PrivCo states. I think the initial offering was a quick cash-grab for those "in the know", but I'm no financial expert. It really seems that way from everything that is happening with the Facebook IPO.