Facebook shares fall to new record low

Facebook is the second-worse performer of all IPOs in the US so far this year
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The social networking site has lost more than 40 per cent of its value since it started trading on May 18th.

Facebook was the first American company to debut with a value of more than $100 billion, but it is now the second-worse performer of all IPOs in the US so far this year. Its price drop in shares is slightly better than the 51 per cent decline by Renewable Energy Group, which went public in January.

Even with stock down 6.3 per cent at $21.71, Facebook still trades at more than 40 times forward earnings compared to Google Inc’s 15.

Wall Street is bracing for a potential deluge of hundreds of millions of shares after August 16, when Facebook employees can sell their company-awarded shares for the first time.

On Tuesday, UBS blamed a 349 million Swiss franc loss from Facebook's botched debut on exchange operator Nasdaq. Because of those technical errors, which gave UBS more shares than its clients ordered, the bank said it will take unspecified legal action against Nasdaq to recoup the losses.

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