Stock drops even as broader market surges
Facebook shares slumped in their second day of trading, confirming fears from Friday that the highly anticipated social network’s initial public offering wasn’t able to live up to the hype.The stock closed down 11% at $34.03 on Monday, Facebook’s second trading day as a public company, even as the broader market surged, with the Nasdaq adding 2.5%. Shares were priced at $38 late last week, the high end of a proposed range, and 421 million shares hit the market. Volume was high, but the stock ended Friday only slightly above that level. Banks that underwrote the transaction stepped in to support the stock whenever it fell to $38. On Monday, absent that support, it tumbled to $33.