Facebook's share price dropped again on its third day as a public company, and there's plenty of blame to go around.
The social network's stock price was down as much as 8.9% on Tuesday morning, a drop of 18% since its Friday morning debut and 11% since the close of trading on Monday.
Taking the blame are lead IPO banker Morgan Stanley, as well as the NASDAQ stock exchange. A systems error at NASDAQ slowed trading in the first few hours after Facebook's debut. Meanwhile, Morgan Stanley is facing a barrage of questions about its handling of the IPO after managing public offerings for LinkedIn, Groupon, and Zynga, including accusations that Facebook's opening trading price was too high and that the bank overestimated demand for the stock.
NASDAQ CEO Bob Greifeld has issued various mea culpas for his company's handling of the IPO, saying it was “not our finest hour” and NASDAQ was “humbly embarrassed.” The stock exchange has reportedly earmarked $13 million to cover losses because of its technical issues.