Social media giant getting a cold shoulder

AUSTRALIAN investors showed considerable appetite for shares in Facebook immediately after its market debut last week, but demand has slackened as doubts about the stock grow.

”There was an increase in interest seen for Facebook on E*Trade in Monday and Tuesday trading,” said a spokeswoman for the ANZ-owned stock brokerage. ”But since then the activity has slowed.”

After a frenzy of excitement and anticipation of the listing, the social media company has delivered a disappointment for investors. The shares fell $US3.03 on Tuesday night to close at $US31 – 18 per cent below their issue price. Regulators in the US are probing whether investment bank Morgan Stanley selectively told clients about a negative report on the company’s shares before they began trading… Read more

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