Where are Facebook's friends?

2012-05-21 16:41

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.

Investors and technology industry watchers are closely tracking the Menlo Park, California-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 début on Friday suffered some hiccups, with trading on the Nasdaq delayed for a half hour and issues with traders' orders. The stock closed on Friday just a few cents above where it priced on 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's stock fell $4.22, or 11%, to $34.01 in morning trading. Shares dropped as low as $33 earlier.

Read more on:    nasdaq  |  facebook  |  us  |  social networks
NEXT ON NEWS24X

linking and moving

2015-04-22 07:36

SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
9 comments
Add your comment
Comment 0 characters remaining

Inside News24

 
/Africa
 

Autobraking: See just how good they are!

Just how good are automatic brakes on cars these days? Two VW models have been praised by top UK research centre Thatcham. Find out why...

 

Stay safe

Pro's and con's of accredited driver-training
Juvenile pillion riders? Play safe...
Need a family ride? SA's top Mommy Cars
Mom's driving-school dream come true
Traffic Alerts
Horoscopes
Aquarius
Aquarius

Something may be concerning you and this puts a dampener on your spirits. You may need to take a closer look into documents, forms...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.