The social network floated at $38 in May with an initial sale of 421m shares. But critics claimed from the start that the company was overvalued and had not devised a credible plan to generate revenue from the increasingly large share of its users on smartphones and tablets.
The technology giant began to gradually lose value almost immediately, slipping another 6.27pc within minutes of markets opening yesterday as Facebook staff became eligible to offload a further 271m shares.
Further options of 1.44bn shares become eligible for sale by staff before the end of the year, which is expected to put further downward pressure on the share price.
Speaking to Facebook employees this week, founder Mark Zuckerberg admitted it had been "painful" watching the share price tumble. The current slump has seen Mr Zuckerberg's personal fortune fall to around $10bn, down from a peak of $20bn in May. Under the terms of the flotation he cannot sell his stock until November.
Facebook has proven to be a high volatility name so far, averaging moves of 4pc daily since its flotation. The shares closed down 4.1pc today at $19.05 but had traded as high as $45 in the week after the flotation.
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