Shares in the world’s largest social network Facebook plunged a further 8 percent on Tuesday to $31.50 per share, well below the offer price at the company’s initial public offering last week on the U.S. Nasdaq hi-tech stock exchange.
Facebook floated 421.23 million shares at a price of $38 per share late on Thursday. The company raised $16 billion and its valuation was estimated at $104 billion.
Facebook shares began trading on Friday morning at around $42, a jump of about 11 percent from the final price set by the company on Thursday night.
But the stock quickly reversed course, dropping and rebounding through most of the afternoon.
Just 10 minutes before the Nasdaq market closed at 4 p.m. ET (12:00 GMT), the stock dipped below $38 per share, but then rose to its closing price of $38.23.
On Monday Facebook shares fell 13 percent at the open to $34 per share and failed to return to the IPO price level throughout the trading session, closing at $34.03.
U.S. media blamed investors’ reassessed demand for the shares, the excessive volume of the Facebook placement and overpricing for the fall.
Most analysts have said Facebook is more likely to trade above its IPO price in the long term.