Facebook shares to come under further pressure as short-sellers pile in
London, June 4 (ANI): Social networking giant Facebook shares are expected to face further pressure on Monday after speculators staked one billion dollars on the firm's market value continuing to spiral downward.
Facebook has been targeted by hedge funds and other short-sellers who are betting billions of pounds on the stock's demise.
Facebook has haemorrhaged 27percent of its value since its 'over-hyped' Wall Street debut on May 18.
According to The Telegraph, the research group, Data Explorers said that eight percent of the company's shares are currently in the hands of short-sellers who typically prey on stock when they detect weakness.
The offensive threatens to increase the woes of investors who piled in at the company's offer price of 38 dollars a share.
The social network's stock closed down on Friday, at 27.72 dollars a share, as fears persisted over the firm's growth potential.
Meanwhile, Facebook and its advisers are facing court action over their handling of the flotation, which is becoming once of the most disastrous IPOs of the past few decades. (ANI)
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