Where Did All the Facebook Buyers Go?

predictions_615.jpg

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.

Presented by

The Atlantic Wire is your authoritative guide to the news and ideas that matter most right now.

How a Psychedelic Masterpiece Is Made

A short documentary about Bruce Riley, an artist who paints abstract wonders with poured resin

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

How a Psychedelic Masterpiece Is Made

A short documentary about Bruce Riley, an artist who paints abstract wonders with poured resin

Videos

Why Is Google Making Skin?

Hidden away on Google’s campus, doctors are changing the way people think about health.

Video

How to Build a Tornado

A Canadian inventor believes his tornado machine could solve the world's energy crisis.

Video

A New York City Minute, Frozen in Time

This short film takes you on a whirling tour of the Big Apple

Video

What Happened to the Milky Way?

Light pollution has taken away our ability to see the stars. Can we save the night sky?

More in Business

Just In