The impacts brought out by the technical failure Facebook IPO (Initial Public Offering) transactions came across last Friday deepened further on Thursday. Fidelity Investments said its thousands of customers encountered the problems of the orders. At this moment, at least two companies declared that they had suffered millions of dollars in losses associated with the transactions. Also read: Three reasons caused Facebook stock price loss.
Last Friday, on the first day of the Facebook IPO, a technical failure resulted the delay in the opening time of the company’s shares, therefore, many of customers orders were delayed, leading some investors and traders suffered heavy losses during the Facebook stock price fall. At present, Nasdaq OMX Group is facing lawsuits from investors. In addition, stock brokers may also take judicial actions.
Investment company Knight Capital and Fidelity Securities claimed that they lost $30 million and $35 million, respectively, as the Facebook stock trading technical failure. Knight Capital asks to obtain tens of millions of dollars in compensation, twice higher than the total amount allocated for the payment of compensation by the Nasdaq. There are also reports said that the online brokerage firm E-Trade Financial has suffered a loss of less than $1 million.
According to a source familiar with the matter, Morgan Stanley on Thursday announced to adjust thousands of deals on Facebookt. The source also revealed that Morgan Stanley had reiterated once again that the transaction issues Facebook has experienced was due to the Nasdaq.
Facebook went public on the Nasdaq on Friday, but the highly expected IPO incurred losses as the the Nasdaq transaction failure, the trading time was forced to postpone for about 30 minutes. Facebook IPO price was $38 per share, in early trading session last Friday, FB stock price had ever hit a new high of $45, but subsequently turned to fall, closed only 0.6% up than the Facebook IPO price. In the trading on Monday and Tuesday, Facebook stock price closed down and rebounded modestly on Wednesday and Thursday.
Facebook stock price was up $1.03, or 3.22% to close at $33.03 in Nasdaq’s regular trading on Tursday. Compared with the Facbook IPO price of $38 per share, this closing price was still down 13%. In the subsequent after-hours trading, Facebook stock price fell $ 0.21 to $33.03, down 0.64%.