Facebook shares tumble to record low

Facebook shares slid below $30 to a new low yesterday as nervous investors fled the company's shares, concerned about the social network's long-term growth prospects and an initial offering price that in retrospect may have been too rich.

By mid-afternoon trade, shares in Facebook were down 9 per cent to $29.05. The eight-year-old company, which began life in Mark Zuckerberg's dorm room, has now shed more than $20bn since its controversial and glitch-ridden market debut at $38 on 18 May.

A software error on the Nasdaq exchange delayed the start of trade by 30 minutes on Facebook's first day of trading, which was to have been the culmination of breakneck growth for the cultural and internet phenomenon.

Instead, claims of selective disclosure leading up to the IPO about Facebook's slowing revenue growth engulfed the company in controversy and multiple lawsuits.