Shares of Facebook, which lost 18% from its IPO price in the first two days of trading this week, rebounded on Wednesday. The stock was higher in earlier trading, but pulled back after reports of investor lawsuits. Facebook stock climbed US$1, or 3.2%, to close at US$32 on Wednesday.
The stock's disastrous market debut on Friday was followed by a two-day decline. The stock is still trading ~16% below its IPO price of US$38 a share.
Facebook is believed to be in talks with the New York Stock Exchange (NYSE) to move its stock from the Nasdaq Stock Market after Friday's opening hiccups.
The much-hyped Facebook's listing got off to a rough start on Friday morning due to a half-hour delay in the trading caused by glitches on the Nasdaq.
The social networking titans' problems got compounded this week as investors began accusing investment banks of concealing important information about Facebook's business prospects from the public.
Several shareholders who bought stock in the IPO have filed lawsuits against Facebook, its executives and Morgan Stanley, the IPO's lead underwriter.
The lawsuits have raised questions at to whether analysts at the Wall Street investment banks cut their second-quarter and full-year forecasts for Facebook just before the IPO, and told just a select group of well-heeled clients about it.
Morgan Stanley declined to comment while Facebook said that the lawsuits are without merit.