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Stick a fork in the Facebook IPO, it’s done

May 18th, 2012 · No Comments

I told you so. I told anyone who would listen yesterday that investing in Facebook’s IPO would be foolish and I was right. Facebook closed its high-excitement IPO day at $38.37 a share… mere pocket change over its initial price.

On Thursday, Facebook had priced its shares at $38, giving itself a valuation of $104 billion, and raising $18.41 billion. Too bad the market didn’t believe that valuation. Oh sure it may look like Facebook, which was to have gone public at 9:30 AM Eastern Time, but actually only started trading on the Nasdaq under the “FB” tickerat 11:00 AM EST, but the stock actually would have dived like the Titanic if it wasn’t for the the company’s 33 underwriters buying up shares to keep it afloat and above water at just over the $38 offering price,

Bullish, would-be buyers had predicted that at the end Facebook’s first day as a public company that the stock would be selling at $54 a share. So much for that pipe-dream.

Stick a fork in the Facebook IPO, it’s done. More >

Tags: Business · Facebook · Network · Social Networking