Facebook shares fall as valuation doubts rise

Reuters News
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Posted: May 24, 2012 1:57 PM
Facebook shares fall as valuation doubts rise

NEW YORK (Reuters) - Shares of Facebook fell again at the open on Tuesday as doubts about the company's valuation increased after Reuters reported that underwriters cut their revenue forecasts for the social networking site shortly before the IPO. [ID:nL4E8GM35V]

Facebook's shares hit a low of $31.73, 7.4 percent below Monday's close, and are now trading down 17.1 percent down from their $38 IPO price. The shares are down 30 percent from a high of $45 hit shortly after they started trading on Friday.

(Reporting by Edward Krudy; Editing by James Dalgleish)