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.

Google Street View, Transformed Into a Tiny Planet

A 360-degree tour of our world, made entirely from Google's panoramas

Join the Discussion

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

blog comments powered by Disqus

Video

Google Street View, Transformed Into a Tiny Planet

A 360-degree tour of our world, made entirely from Google's panoramas

Video

The 86-Year-Old Farmer Who Won't Quit

A filmmaker returns to his hometown to profile the patriarch of a family farm

Video

Riding Unicycles in a Cave

"If you fall down and break your leg, there's no way out."

Video

Carrot: A Pitch-Perfect Satire of Tech

"It's not just a vegetable. It's what a vegetable should be."

Video

The Benefits of Living Alone on a Mountain

"You really have to love solitary time by yourself."

More in Business

Just In