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The hottest IPO of the year turns cold as shares close four dollars south of open

Facebook IPO disappoints as Zynga crashes

In an unexpected twist of fate, Facebook’s share price has closed at $38.23, well below the average target of $41.50 set by analysts.

The highly anticipated IPO for the social media company launched today, opening at $42.05- four dollars above its set price.

As the day contined, initial fluctions turned into a slow descent, finally diving down to the initial asking price of $38.00 before bouncing back at close.

Though the reasons for the poor performance are unclear, the social games company Zynga took huge losses, and closed at a record low of $7.16.

Though the dive in Zynga stock seems to be caused by investors jumping to get on board the IPO, it may be that the poor fortunes of a company reported to furnish twelve percent of Facebook’s revenues raised doubts about the health of the relationship.

Prices have continued to fall in after hours trading.

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