All Eyes on Facebook's Stock Monday After a Fascinating IPO

After a weird IPO, no one knows exactly what's going to happen with the social media's shares on its first full day of trading.

facebookshares_615.jpg

Just when you thought absolutely nothing interesting could happen on Friday, when Facebook debuted on NASDAQ, something did: the company's bankers really did set the price of the offering as high as the market would bear. That is to say, when the shares made it out to the open market, they didn't immediately spike as has happened with so many other tech IPOs like LinkedIn's last year. Some have argued that's a good thing, others that it wasn't.

Regardless, as Friday's trading drew to a close, Facebook's underwriters (namely, Morgan Stanley and the consortium of banks the company put together) propped up Facebook's share price at $38. They just would not let the company's share price fall below where they priced it. If you want to see a detailed blow-by-blow of how it worked, check out this rather stunning video recap. Meanwhile, other social media companies' shares tanked for reasons that are not quite clear.

In any case, no one expects those underwriters to keep up that kind of buying. So, Facebook will have to stand on its own. The big surprise, it seems, was that Regular Joe investors seemed unimpressed with the company's offering. Most industry watchers expected the stock to pop because they figured retail investors would herd into the shares. For whatever reason, those regular people didn't on Friday. Now everyone is waiting for the opening bell to find out if they will be more interested now that the hype of the IPO is over. I know better than to offer a prediction.


Presented by

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well. Bestselling author Mark Bittman teaches James Hamblin the recipe that everyone is Googling.

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

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well.

Video

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Video

The Health Benefits of Going Outside

People spend too much time indoors. One solution: ecotherapy.

Video

Where High Tech Meets the 1950s

Why did Green Bank, West Virginia, ban wireless signals? For science.

Video

Yes, Quidditch Is Real

How J.K. Rowling's magical sport spread from Hogwarts to college campuses

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

More in Technology

Just In