Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00

marketwatch.com

Post reply on HN
Print view View original

21–30 of 105 posts

Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00

#21

Post by EternalFury »

gojomo wrote: post #10
loumf wrote: post #2

On 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…

It used to be "the sky is the limit". Now it is "the floor is the limit and the floor is $38". The Facebook baby bird broke out of its egg today. Next week, it must learn to fly out of the nest on its own. That should be a dinner and a show.

Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00

#22

Post by kjemperud »

So what about the cancel/change orders being stuck in limbo the entire day? I was unable sell $fb because of this. Tried to dump them at 41.50, but because one cannot "trade with oneself" I couldn't. Heads should be rolling at Nasdaq by now...

Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00

#23

Post by loumf »

rorrr wrote: post #7

I 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.

If it stays there, then $38 is the market view of the present value of future business models it thinks FB will be able to create. It's not just what they do now, it's "the unknown" things people think they will be able to do (which is just speculation).

GOOG investors are speculating that there's less potential for that.

Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00

#24

Post by hiddenstage »

loumf wrote: post #2

On 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.

It beat the market. Not saying it will over the short/long term, but it went up on a day the majority of the market went down.

Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00

#25

Post by swasheck »

dsil wrote: post #20
rorrr wrote: post #7

I 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.

But isn't the future based, at least in part, on what's happened in the past?

Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00

#26

Post by RobAtticus »

its_so_on wrote: post #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 pric…

Considering many recent tech IPOs have ended up much higher on their opening day, AND Facebook was highly anticipated, it is surprising that Facebook barely gained anything on its opening day. In fact, if not for the underwriters, it might not have gained anything at all.

Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00

#27

Post by fl3tch »

its_so_on wrote: post #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 pric…

What great world we would live in if all stocks increased that linearly.

Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00

#28

Post by loverobots »

gojomo wrote: post #10
loumf wrote: post #2

On 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…

Still, this isn't necessarily a negative for Facebook. They optimized their take, and Zuckerberg won't be needing the market's approval or capital again for a while.

Technically, but the minute you go public you have to worry about the stock price. If the stock drops (IMO, it will drop here) expect a deluge of doom and gloom stories from the media questioning their business model and everything else in between. Then you may have unhappy employes due to the stock drop, harder time hiring, higher expenses since the stock price isn't rising and so on. Bezos did it so far, but it isn't easy. Zuckenberg sold a nice chunk of his $100 Billion company, buyers will be vocal if the price drops.

FB will have to do everything right for a few years just to justify the $100 billion price tag. It's not easy as ads can drive people away.

Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00

#29

Post by sukuriant »

its_so_on wrote: post #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 pric…

The more interesting thing is: "It didn't plummet like some people were expecting!!!"

Re: Facebook closes at $38.23 first day NASDAQ trading, above IPO price $38.00

#30

Post by aamar »

its_so_on wrote: post #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 pric…

Stocks can often pop on the first day after IPO, if there's a lot of demand building. There was a time when companies doing IPOs would consider a 100% increase ("shooting the moon") a realistic possibility. LinkedIn went up 117% a year ago[1]. I don't mean to indicate that these events are positive or a good expectation, just that it does frequently happen.

[1] http://money.cnn.com/2011/05/19/technology/linkedin_IPO/inde...

Post reply on HN