May 18, 2012 will be remembered as a day of more hype than substance. A
flurry of frenzied activity marked the first 30 seconds of Facebook's
(FB) entry into the world of publicly traded companies with
volume surging to more than 80 million shares. By the end of the day,
an IPO record of nearly 567 million shares were traded as investors
clamored to own a piece of the social networking giant. But the stock
price hovered near its offering price.
"Facebook disappointed by going nowhere - the hype didn't carry it through," said Margaret M. Black-Scott, President & CEO of Beverly Hills Wealth Management. "What's next? Can Zuckerberg show that they have a truly disruptive product and gain traction in the after market. Our clients are waiting and hoping."
On Thursday, Facebook priced its IPO at $38 per share to raise $16 billion. The stock opened higher at $42.05 and climbed to $45 only to retreat as the stock failed to catch fire. The largest internet IPO ended the historic day up a modest 23 cents to close at $38.23.
Originally slated to sell 337 million shares, Facebook cited strong demand for increasing its offering to approximately 421 million shares barely two days before making its market debut. Even with the added shares, the offering was greatly oversubscribed.
"Frankly, I think the excitement for Facebook is overdone," said Jason Raznick, CEO at Benzinga.com on Thursday. "I doubt that the stock will maintain the premium that has been building during the media frenzy. I'd be careful investing into it at the $38 IPO pricing."
Facebook founder and chief executive Mark Zuckerberg rang Nasdaq's opening bell this morning as investors eagerly awaited active trading of FB on the tech heavy exchange. Zuckerberg sold 30.2 million of his shares which added $1.1 billion to his bank account.
Zuckerberg launched Facebook in 2004 as a Harvard sophomore with membership limited exclusively to Harvard students. Membership was soon extended to other colleges and universities. Facebook now boasts over 900 million users around the world.
Facebook reported 2011 revenue of $3.7 billion and profit of $1 billion. With a valuation of approximately $104 billion, Facebook's P/E is a staggering 104.
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|06:26 PM||Dow Rises To Another Record|
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|10:43 AM||Mixed Open Ahead Of Apple's Testimony|
|Mon, May 20, 2013|
|06:07 PM||Investors Lock In Profits|
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|10:42 AM||Mixed Open After Records Last Week|
|Fri, May 17, 2013|
|06:22 PM||Records For Fourth Consecutive Week|
|03:02 PM||Markets Rise As Consumer Sentiment Climbs|
|10:42 AM||High Open As Consumer Sentiment Climbs|
|Thu, May 16, 2013|
|06:29 PM||Economic Data Weighs Down Markets|
|02:20 PM||Markets Rise On Upbeat Earnings|
|10:42 AM||Mixed Open As Jobless Claims Rise|
|Wed, May 15, 2013|
|06:43 PM||Record Dow Close Again|
|01:23 PM||Rise In Homebuilder Confidence Lifts Markets|
|11:30 AM||Lower Open As Factory Output Drops|
|Tue, May 14, 2013|
|06:27 PM||Another Dow Record As Investor Confidence Grows|
|01:03 PM||Investor Optimism Lifts Markets|
|10:42 AM||Higher Open On Lower Import Prices|
|Mon, May 13, 2013|
|06:07 PM||Mixed Close Over Stimulus Concerns|
|01:34 PM||Markets Mixed As Retail Sales Rise|
|10:43 AM||Stimulus May End, Markets Open Lower|
|Fri, May 10, 2013|
|06:31 PM||Another Winning Week|
|02:06 PM||Mixed Markets As Investors Monitor Global Developments|
|11:33 AM||Mixed Open After Record Week|
|Thu, May 09, 2013|
|06:01 PM||Markets Retreat From Record Highs|
|03:13 PM||Markets Rise As Jobless Claims Drop|
|10:42 AM||Markets Retreat After Yesterday's Record Close|
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