Shares in the social networking site Facebook fell to less than $30 Tuesday. The price of Facebook dropped $3.07, almost 10 percent, to close at $28.84.
Facebook shares are 24 percent lower since their highly publicized IPO on May 18 of $38.
Financial experts say Facebook stock has been hurt by an oversupply of shares, NASDAQ problems that postponed trading on the first day, and investor lawsuits.
Facebook’s main underwriter, Morgan Stanley, has been accused of cutting its forecast of Facebook’s future earnings just before the shares went on sale. The bank allegedly told large investors while withholding that information from average investors.
The bank has said it did nothing wrong.
Despite Facebook’s slide, some analysts say they still have confidence in the company and predict the share price will rise by the end of the year.
Facebook is the world’s most popular Internet social network, with nearly one-billion users worldwide. People use Facebook to post photographs and write details about their lives, often reconnecting with long-lost friends and family members. But technology experts say Facebook has yet to devise a strategy to attract advertising on mobile devices like smartphones or tablet computers, causing some analysts to question its ability to make money.