The Big Facebook Public Stock Sale Was………Not So Good
Today was the big day...the day Facebook went public with potential share buyers lining up with visions of riches beyond their wildest expectations. Facebook did raise over $18 billion which gets their market value to about $100 billion, which was the goal. The stock sale, known as an IPO (initial public offering), did much better than Google's IPO in 2004 which raised about $1.7 billion putting the market value somewhere around $26.4 billion, but again, that was 2004. Trading was actually delayed because of a huge surge of orders. The stock finally began trading on the NASDAQ under the symbol "FB" at 11:35 am ET.
The hope was the stock would close at something much higher than the initial price of $38 per share. FB did get to $43 for a very short time then dropped back to $38 taking the entire floor by surprise and ultimately closing at $38.23, meaning a gain of only 23-cents above the IPO price...not what they expected.
Most believe that FB's closing price means a very uncertain future for the stock which absoutely flies in the face of what was expected. The upside for people who bought the stock today....at least you haven't lost anything.........not yet anyway. Time will tell, but it appears FB got a 'thumbs down' today.