While stocks are jumping out of the gate this morning, Facebook has stumbled again.
Facebook shares are down more than 5% this morning, hitting new lows in the social network’s short history as a publicly traded company. More than an hour into trading, shares are at $30.17. The stock has lost about 21% of its value since going public on May 18 at $38 apiece.
Today’s drop comes on the first day of Facebook’s options activity. Dow Jones’ Kaitlyn Kiernan offers the details:
Facebook options, like the stock in its debut, post impressive first day volume so far. Facebook looks poised to become one of the most-traded corporate options today, with a total of 17,232 options — 7,476 puts and 9,756 calls traded in the session’s first 15 minutes. Bank of America and Apple, which often vie for the largest daily options trading volumes, traded 15,697 and 50,518 options in the first 15 minutes, respectively.
Much has been written about the trading glitches and technical issues that plagued Facebook when it first started trading earlier this month. But as the IPO mania dies down and the stock keeps falling, it’s clear the hype surrounding the stock prior to the IPO has radically shifted from euphoric to bleak.
Walter Zimmerman, senior technical analyst at United-ICAP, points to some of the behavioral finance elements that may be behind the stock’s troubles during its first week and a half of trading.
CONTINUED at the Wall Street Journal.