Who is hitting the 'unlike' button on Facebook?

Who is 'unliking' Facebook? Photo: Martin Keene/PA Wire

After all the huff and puff on the most expensive flotation of a company ever, Facebook shares today are well down on what they were worth on their first day of trading on Friday.

The price is now down more than 10%, hitting as low as $33. With 85 MILLION trades already in the company today, and hardly any buyers in sight.

So what went wrong? Market whispers that the investment banks who managed the sell off, Morgan Stanley and JP Morgan, who were on a fee of more than 1% of the original deal, pumped the original offer price too high, and sold too many shares.

Their actions potentially overestimated the actual demand from the market for the shares. Doing so always ran the risk that they would kill demand for the company, in the 'aftermarket' - the days following the deal.

Facebook listed on the NASDAQ

Now those banks who underwrote the deal, are getting out of the company themselves.

In the two minutes that I was talking to one trader about what's happening another million shares had been sold off.

It's hard to tell right now how soon, if ever, the price will get back to the sell off price of $38.

With the market so far making a judgement only one way, it is not going to be today.

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