After rumors of people receiving ?gifts? of mansions in exchange for their future rights to buy shares of the Facebook IPO, the actual public offering is feeling like a bit of a letdown to many people. Shares were priced last Thursday evening at $38.00 a share for total proceeds of $16 billion and a record valuation of $104 billion. However, on Friday, although shares opened at $42 they fell to $38.23 by the end of the day, only 0.6 percent higher than investors paid for the IPO stock[1]. Although analysts tried to be positive, praising the underwriters for pricing Facebook ?pretty close to where it?s trading,? a general sense of deflation led to even lower after-hours trading, and stocks opened this morning at $36.53 and were trading at $33.73 at time of publication, around noon on Monday[2].
Although many investors are still putting a bright face on the fact that Facebook did not enjoy a ?big pop? in the wake of its IPO, others admit to ?concerns about growth and advertisers? frequent lack of certainty how best to use Facebook.? If you bought Facebook stock, are you glad you did? If you didn?t, do you wish you had?
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[1] http://www.mercurynews.com/business/ci_20672057/facebook-stock-sinks-below-ipo-price
[2] http://data.cnbc.com/quotes/fb
Category: Financial Markets
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