Facebook shares plunged Monday, with its stock falling about 11% below its IPO price of $38.
The social networking site’s stock closed at $34.03, down 10.99% in trading on the Nasdaq Stock Market on Monday. Facebook shares ended the first day of trading on Friday at $38.18, up a mere 0.47%.
The offering on Thursday raised $16 billion, valuing Facebook at 107 times trailing 12-month earnings, more than every S&P 500 member except Amazon.com and Equity Residential.
Facebook is trying to attract more marketers to boost sales as competition increases. General Motors Co. last week announced plans to cut Facebook advertising.
Nasdaq OMX Group, under scrutiny after shares of Facebook were plagued by delays and mishandled orders on its first day of trading, said in a statement that it will no longer accept modifications to orders during the final stages of initial public offering auctions.
Robert Greifeld, Nasdaq’s CEO, said Sunday that Facebook’s stock trading following its IPO was delayed Friday because computer systems used to establish the opening price were overwhelmed by order cancellations and updates.
Monday’s stock decline cut Facebook CEO Mark Zuckerberg’s fortune by $2.2 billion. Mr. Zuckerberg’s stake is valued at $17.1 billion. He had ranked 26th on the Bloomberg Billionaires Index on Friday.