Technology
Facebook extends post-IPO slump
Emmanuel Dunand|AFP PHOTO A sign announcing Facebook IPO is flashed on a screen outside the NASDAQ stock exchange after the opening bell in Times Square in New York, May 18, 2012 when the social media site went public.
Posted Tuesday, May 29 2012 at 20:16
NEW YORK, Tuesday
Facebook shares have extended their slump Tuesday after a much-hyped public offering earlier this month, shedding more than seven percent as markets reopened following a US holiday weekend.
In midday trade, Facebook slid 7.4 percent at $29.56, or down more than 20 percent from its offering price of $38 on May 18.
The market action came amid reports that Facebook was preparing to launch its own mobile phone, apparently as part of a strategy to get more revenues from the mobile space.
Another report last week said Facebook was considering the acquisition of Opera, the Norwegian-based maker of browser software that is widely used on mobile devices.
A series of lawsuits have been filed against Facebook and its underwriters claiming key information about the company's outlook was withheld from investors ahead of the IPO.
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