Since Facebook's stock has gone public it is now sliding further on its third day of trading as investors are starting to reconsider how much the social network is actually worth.
Facebook's initial public offering of stock raised $16 billion, valuing the company at $104 billion more than Amazon.com Inc., is valued at stunningly close $98 billion.
But Facebook's stock has plunged after the IPO. It fell $1.09, to $32.94 in late morning trading on Tuesday, after dropping as low as $30.98 earlier in the day. The latest price is just 13 percent below the IPO price of $38 and values the company at just around $91 billion.
This downward spiral has left investors sitting on big losses. Nothing fundamental has changed at Facebook in the days since the much-hyped company came to Nasdaq Stock Market with a ticker symbol of "FB." Facebook still has more than 900 million users, its 28-year-old founder Mark Zuckerberg controls the company, and it is still one of the few profitable Internet companies to go public.
But investors still don't seem to be convinced. Facebook's stock closed Monday at $34.03, down 11 percent from Friday's closing price of $38.23. The investment banks that arranged Facebook's offering set a price of $38 on Thursday. Although many investors had hoped for a big first-day pop, Facebook's stock opened Friday at $42.05 and fluctuated between $45 and $38 throughout the day.