Facebook shares fell 9.6 percent to below $30 today, the lowest since they officially went public, as options trading on the stock began.
The worlds most popular social media network has been the worst-performing IPO in at least a decade, falling more than 20 percent. The shares fell $3.07 to $28.84 in Nasdaq trading today. They opened at $38 in their May 18 debut and briefly reached $45.
Investors are neutral on Facebook’s prospects. The most widely-sold option bets that the price of Facebook shares will fall to $25 by mid-July.
And the company, along with the investment banks that led the IPO, is the subject of at least two shareholder lawsuits. They allege that analysts at the large banks cut their financial forecasts for Facebook just before the IPO and told only a handful of clients.