New York – Facebook’s stock is tumbling well below its $38 IPO price in the social network’s second day of trading as a public company on Monday.
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Investors and technology industry watchers are closely tracking the Menlo Park, Calif.-based company’s shares. The world’s largest online social network was one of the most anticipated initial public stock offerings ever, and now serves as a bellwether for other social media companies.
Facebook’s market debut Friday suffered some hiccups, with trading on the Nasdaq delayed for a half hour and issues with traders’ orders. The stock closed Friday just a few cents above where it priced Thursday night, when many investors had hoped for a big first-day pop. The shares opened Friday at $42.05, and fluctuated throughout the day before closing at $38.23.
Wedbush analyst Michael Pachter, who came out with an “Outperform” rating on Facebook before its IPO, said he thinks the underwriters overestimated demand for the company’s stock. Last week, the underwriters, led by Morgan Stanley, increased the offering price range. On Wednesday, Facebook’s early investors and other stockholders increased the number of shares they were selling in the IPO. Both had seemingly been signals that there was strong demand for shares.
“The late addition of 84 million shares to the offering overwhelmed demand, limiting the first day price,” Pachter said in a note to investors.
On Monday, Facebook Inc.’s stock fell $4.22, or 11 percent, to $34.01 in late morning trading. Shares dropped as low as $33 earlier.
Come on, you didn’t really think they were going to run in the heavily-favored horse on which everybody bet!!!
its an empty co. its made just to “shtip tzeit” the whole facebook has no subtance, and thats 1 of the reasons GM pulled their ads, its sunscribers are millions of “leidiguyers” with no goal what so ever!!!
so how much is mark sugarhill worth now?
The effects of the Kinus đ
Stay clear of this stock, IMO it’s a fad that will crash sooner than later. I don’t see them having revenue gains as they should.
Must be all the people who attended the kinnus against the internet yesterday sold their stocks. đ
Actually, this might be a temporary glitch caused by the great hype and drama that accompanies an IPO. The stock has probably entered a temporary roller-coaster ride. 1) The price jumped up in reaction to all the people buying the eagerly awaited offering – especially with a well-known internet-based company like Facebook. 2) A contingency of power-traders sold their stocks immediately at this jump to take their profit. 3) The large sellout caused the stock to fall. 4) The fickle stock market might have reacted to this by selling more to avoid further loss, causing plummet in price.
This is an illogical reaction to a temporary adjustment. Facebook, though, is a solid company and will probably recover and continue to rise.
And let’s not forget, the CEO of Facebook just “celebrated” his intermarriage. What a tragedy for our people, especially if others look up to him as some kind of a role model.
And the rabbi from his temple was still on the radio last week bragging how proud he is from this goy!