Facebook shares slump in premarket trading on Friday as investors continue to approach the newly public social networker with caution.
NEW YORK (TheStreet) -- Facebook(:FB) shares slumped in premarket trading on Friday as investors continued to approach the newly public social networker with caution.
Shares of the Palo Alto, Calif.-based firm, which closed up 5% on Thursday, were off 3.45% at $28.58 before market open. Facebook's shares are down more than 22% since the company's headline-grabbing IPO last month.
Morgan Stanley(:MS), the lead underwriter for the IPO, has been under fire for its handling of the Facebook offering, although John Gorman, the bank's CEO, defended his firm in an interview with CNBC late on Thursday.
"We have a long track record," he said, when asked whether the controversial Facebook offering would deter other IPO-ready companies from working with Morgan Stanley. "We have tremendous people -- they do the right thing."
Facebook was also one of the most active premarket Nasdaq stocks on share volume of 628,024.
Groupon(:GRPN) was another laggard on Friday as shares of the daily deals site tumbled 7.52% to $9.84, continuing the prior day's decline. With a number of Internet stocks under pressure, Groupon shares closed down 4.14% on Thursday.
The Chicago-based firm was also one of the most active Nasdaq stocks on share volume of 163,016.
Ciena(:CIEN), which reported strong second-quarter results on Thursday, was off 3.32% at $13.10 on Friday.
--Written by James Rogers in New York.
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