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Shares in social networking site Facebook slid almost 10 per cent Monday, triggering a rarely used circuit-breaker designed to prevent runaway short-selling on the Nasdaq stock exchange.
The sell-off began at the opening of trading as investors reacted
to a report in financial journal Barrons which said that Facebook's
inability to monetize mobile advertising means the stock should be
worth just 15 dollars -- 34 per cent below its price prior to the
start of trading Monday.
The social networking giant went public in May at a price of 38
dollars and a market cap of a record 104 billion dollars. At Monday's
close Facebook's shares sold for 20.79 dollars, giving it a market
valuation of 49 billion dollars.
