Facebook stock is now available to the public, but is it meeting expectations?
Yesterday Facebook offered up 421.2 million shares for $38 a piece on Nasdaq, netting $16 billion, but insiders say that underwriters did a lot of the buying, tasked with making sure the stock did not fall below the initial offering price. And, after initial glitches stalled Nasdaq’s trading system, today’s celebratory bell-ringing by Facebook co-founder Mark Zuckerberg was followed by only mediocre trading for Facebook, along with several hour-long pauses in Zynga sales due to increased volatility (Zynga produces Farmville and other games for Facebook).
Facebook’s I.P.O is the largest ever for a tech company, and the third largest public offering in the history of the United States. But is it worth its asking price and what will happen when the underwriters clear out?
Did you by Facebook stock? Why or why not?
Matt DeBord, economy reporter, KPCC