On Friday, Twitter pundits vastly overrated Facebook's closing price by 50% -- or much, much more. On Monday, its second day of public trading, Facebook fell 10% below its IPO price. [Insert "defriending" joke here]. So what the heck is going on?
What was supposed to be the sexiest IPO of all time actually turned out to be pretty lackluster as the stock closed last Friday at $38.23, about only 0.6 percent higher than it was priced at--even though it set the record having the highest volume of shares traded on its debut day. Arvind Bhatia, a tech analyst with the Sterne Agee investment firm, told the San Jose Mercury News that Facebook's IPO was "a little bit surprising and disappointing ... At the same time, you could give kudos to the underwriters because they priced it pretty close to where it's trading." While another analyst took bearish stance in Bloomberg, "There are only so many people that are going to buy into a hyper-growth story."
Read the full story at The Atlantic Wire.