The hottest IPO of the year turns cold as shares close four dollars south of open
In an unexpected twist of fate, Facebook's share price has closed at $38.23, well below the average target of $41.50 set by analysts.
The highly anticipated IPO for the social media company launched today, opening at $42.05- four dollars above its set price.
As the day contined, initial fluctions turned into a slow descent, finally diving down to the initial asking price of $38.00 before bouncing back at close.
Though the reasons for the poor performance are unclear, the social games company Zynga took huge losses, and closed at a record low of $7.16.
Though the dive in Zynga stock seems to be caused by investors jumping to get on board the IPO, it may be that the poor fortunes of a company reported to furnish twelve percent of Facebook's revenues raised doubts about the health of the relationship.
Prices have continued to fall in after hours trading.