On their second day of trading, Facebook's stocks dropped below their offer price, losing Mark Zuckerberg's personal fortune $2.2 billion.

On their second day of trading, Facebook's stocks dropped below their offer price, losing Mark Zuckerberg's personal fortune $2.2 billion.

 

Mark Zuckerberg – image from TechnoBuffalo
 
On May 17th, Facebook sold 421.2 million shares at a price of $38 each, earning the company $16 billion in the biggest technology IPO in history, following a good deal of hype and hoopla. On today, the 21st, the shares sank 11.3 percent to $33.90 at 12:37 P.M in New York. Before this, the shares had gone down as low as $33, 13.7 percent. 
 
As a consequence, Facebook's chariman and chief executive Mark Zuckerberg lost $2.2 billion. Ranking 26th on the Bloomberg Billionaires Index on May 18, Zuckerberg’s stake is valued at $17.1 billion. Zuckerberg wed 27-year old Pricsilla Chan on Saturday, the day after the IPO.
 
Analyst Martin Pyykkonen with Wedge partners said in a phone interview, "If you went out and spent on Friday, you’re not canceling the order for the Lamborghini just yet. For the most part, those with a substantial stake still have plenty of value."
 
On its first day, the IPO suffered from trading glitches. Robert Greifeld,  Chief Executive Officer of Nasdaq credited these glitches to a “poor design" with software driving auctions for IPOs.
 
One trader, mistakenly pressing the wrong buttons, accidently cancelled his order in a "happy accident" on Friday. Those who did not join the hordes on Friday to nab stock in the IPO should be glad that they did not.
 
Source: Bloomberg