In the first hour of the trade the stock plunged by as much 14.99 per cent to a low of USD 22.77 on Nasdaq.
Yesterday, the company’s poor quarterly performance dragged down its share by over 8 per cent. It had announced net loss of USD 157 million for the April-June quarter in the first earnings report since it went public, against net profit of USD 204 million in the year-ago period.
The loss was triggered mainly due to stock compensation expenses following the initial public offering.
The company’s share price has not crossed above USD 38 since the first day of its IPO trading. The stock had tumbled by 8.5 per cent to settle at USD 26.84 on Nasdaq.
On May 18, Facebook made history by launching one of the largest IPOs for a technology firm to raise USD 16 billion that valued the social networking site at USD 104 billion. However, Facebook’s much anticipated IPO was marred by technical glitches at Nasdaq.
Facebook has recorded a 32.29 per cent jump in revenues at USD 1.18 billion in the second quarter of 2012 on account of contributions from advertising business.
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