Facebook’s initial public offering is off to a less than spectacular start, to put it generously. The stock closed at $31 on its third day Tuesday, down 18% from its initial offer price of $38, which valued the company just above $100 billion.

Facebook IPO
Facebook’s revised IPO prospectus, and the relatively poor performance of other social media stocks in 2011, may have further dampened investors’ enthusiasm for the stock.

After Facebook’s stock closed flat its first day, investors and media began to speculate whether Facebook’s initial offer price was too high. Others argued that momentum was damaged by Nasdaq’s technical difficulties, which delayed buying by a half hour, as well as by a report that General Motors was planning to pull its Facebook ads just days before the IPO.

 

via Facebook IPO: What Went Wrong?.

About the author

1 comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

TAT strengthens presence in the Middle East market

The Tourism Authority of Thailand (TAT) is strengthening Thailand’s presence as the preferred tourist destination among Middle East travellers to drive interest in returning to Thailand in the post COVID-19 situation.

Thailand to reopen bars and nightlife venues in June

The Centre for Covid-19 Situation Administration (CCSA) decided last week to allow bars, pubs, karaoke clubs and massage parlors to reopen in 31 regions starting from June.

Thailand Issues First Personal Data Protection Act

Thailand’s first consolidated law on personal data protection, called the Personal Data Protection Act (PDPA), was initially signed in 2019 but will be enforced from June 1, 2022, after being postponed due to the pandemic.