Facebook shares were trading slightly higher on the Nasdaq on Wednesday following the steep decline that saw share prices for the social media giant plunge 8.9%, which followed an 11% drop on Monday.
Modest gains saw Facebook shares trading up 2.4% at $31.74, a gain of 74 cents a share.
But financial regulators have stated that issues around the initial public offering of Facebook should be reviewed; therefore putting new pressure on the company, lead under writer Morgan Stanley and the Nasdaq stock exchange.
Facebook decided to tell analysts to cut estimates due to feedback during the investor road show. What was revealed was that most people were connecting to Facebook through their cell phone devices, which generate less advertising revenue.
Financial regulators will now review Facebook's initial public offering after it closed flat Monday. For Facebook and Morgan Stanley, news about the revised projections has further undermined confidence in the social media company's shares.