New York City -
Shares of Facebook slide again today, down to $34.03, or 11%, from its opening of $38 per share during its recent IPO. Even has Facebook was preparing for its IPO, there were considerable concerns that it was overvalued, with GM recently pulling all of its advertising with the social media giant citing poor returns on ad investment with Facebook saying it was "ineffective."
Facebook was one of the most anticipated initial public stock offerings ever and trading on the Nasdaq were delayed at the opening caused hiccups within the trading computer systems. Additionally, Facebook added another 84 million shares to the market which ended up creating too much supply and limited the price of shares.
Shares of some related social media companies also declined Monday. Zynga (ZNGA), which makes FarmVille, CityVille and Mafia Wars, and gets the bulk of its revenue from Facebook users, fell 1.0% to $7.09. The stock earlier touched as low as $6.36, its lowest level since the San Francisco company's December IPO.