"The stock closed Friday at $38.23 — just 23 cents above its IPO price"
Just wanted to point out that FB did NOT close at $38.02, though I think that would've been hilarious.
Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00
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Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00
#12On the one hand, this indicates that the underwriters did a good job of maximizing FB private shareholder value on the IPO. On the other, the shape of the daily curve looks like it was supported at that level artificially. Even if not, it doesn't look like there's a lot of market confidence for it at this level.
here's the pricing chart for today [1]. What makes you think it was supported -- the flat line beginning at 334 pm? [1] http://finance.yahoo.com/echarts?s=FB+Interactive#symbol=fb;... ;
Well the price did come very close to $38 several times (twice before 12:00 and then during the flat part at 3:34 that you mentioned) but the price never crossed below $38. This does show a lot of resistance/support at $38
Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00
#13(EDIT:
Earlier this title read "barely above it's IPO price". It definitely used this word, "barely". My comment is now moot. I'm leaving it due to the replies.)
what is with this title? It sounds like it's saying sullenly, "a year later, Facebook is barely above its IPO price".
OF COURSE IT'S TRADING AROUND ITS IPO PRICE, GIVEN THAT IT'S JUST IPO'D. I mean, of ALL the times a company could be trading at its IPO price, don't you think the IPO date is the least notable? Yeesh.
Incidentally, the submitter and I also have a VERY different definition of 'barely.' $0.23 in a day means $230 per 1000 days. At that rate, investing at $38 sounds like a steal to me! A better title might be "Facebook stock up already!"
Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00
#14I read earlier that the underwriters were forced to buy large amounts to keep the price above the IPO. It could have been much lower!
Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00
#15FB: $38.00, May 18th 4:19 ET
Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00
#16On the one hand, this indicates that the underwriters did a good job of maximizing FB private shareholder value on the IPO. On the other, the shape of the daily curve looks like it was supported at that level artificially. Even if not, it doesn't look like there's a lot of market confidence for it at this level.
More evidence of artificial support, a tweet and screen capture from Paul Kedrosky: http://lockerz.com/s/209964861 It's easy to overlook the graphic; it's the thin black bar with faint text. It shows: Bid (size): 38.00 (x9999900) Ask (size): 38.01 (x146300) ...and the tweet referencing it was about 20mins before the close. The earlier tweet was: @pkedrosky: Watching certain underwriters try to keep certain IPOs above…
What's going to be interesting is how long they can hold this support.
Banks can't take on too much risk on their books.. especially in the post Dodd-Franks world.
Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00
#17On the one hand, this indicates that the underwriters did a good job of maximizing FB private shareholder value on the IPO. On the other, the shape of the daily curve looks like it was supported at that level artificially. Even if not, it doesn't look like there's a lot of market confidence for it at this level.
This is the greenshoe option at work:
When the price is determined, the shares are ready to publicly trade. The underwriter has to ensure that these shares do not trade below the offering price.
If the underwriter finds there is a possibility of the shares trading below the offering price, they can exercise the greenshoe option.
http://www.investopedia.com/articles/optioninvestor/08/green...
Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00
#18So how does this ripple out?
My (amateur) thought is that it means the end of billion dollar valuations for companies with no revenue whatsoever.
Which will have the effect of pushing all valuations down.
Which is maybe not a bad thing, overall.
Will it mean less actual funds raised? Or similar amounts, just at notably lower valuations (and thus for a greater percentage of shares)?
Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00
#19I really don't get why FB is valued that much. If you look at their revenues, net income, quarter-to-quarter growth, the stock should be at $5.50. Seriously, look at GOOG, compare it to FB. You must be insane to buy FB.
The question for many investors isn't in the current figures so much as what are the future figures likely to be and how that compares to the current figures.
Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00
#20I really don't get why FB is valued that much. If you look at their revenues, net income, quarter-to-quarter growth, the stock should be at $5.50. Seriously, look at GOOG, compare it to FB. You must be insane to buy FB.
Buying stock is generally about what you think will happen in the future, not what has happened in the past.