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Facebook continues slide as stocks edge higher in early trading

May 22, 2012|By Andrew Tangel
  • Facebook opened lower in its third day of trading on Wall Street.
Facebook opened lower in its third day of trading on Wall Street. (Carolyn Cole / Los Angeles…)

Facebook shares were taking another beating in early trading on Wall Street, falling more than 6% shortly after the opening bell.

Facebook's stock was trading under $32 a share, $6 below its IPO price and where it settled on its first day of trading Friday. Facebook shares slid 11% on Monday.

The social networking company's disappointing performance in its stock market debut is likely to continue to raise questions about the underwriting process for its highly hyped initial public offering.

Morgan Stanley, which led Facebook's bid to go public, is getting its share of the blame.

"They overplayed the enthusiasm and probably just misread the atmosphere of the marketplace,” Keith Wirtz, chief investment officer at Fifth Third Asset Management in Cincinnati, told Bloomberg News.

Major U.S. stock indexes, meanwhile, edged higher in early trading.

The Dow Jones industrial average was up 14 points, 0.1%, to 12,518.

The broader Standard & Poor's 500 was up 5 points, or 0.4%, to 1,321.

The Nasdaq was up 9 points, or 0.3%, to 2,856.


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