Friday, May 18, 2012

Facebook Stock Jumps in Public Debut

Facebook founder Mark Zuckerberg rang the Nasdaq opening bell from company headquarters in Menlo Park, Calif.Facebook Inc. shares headed off to a rocky start this Friday in what has been the most highly anticipated initial public offering in history as of right now.

Facebook stock has jumped more than 10% in just the first few minutes it began trading. But then sellers swept into the market and that gain has evaporated.

“It’s a total disaster because the stock is trading right at the IPO price,” said Francis Gaskins, editor of in Marina del Rey. “They didn’t want that in a million years. A traditional IPO is up 10% or 15%.”

The stock most recently hovered at about $40, which is only $2 above what shares were priced at late Thursday night. Shares touched that $38 level multiple times during trading.

Investors also had to contend with a nearly three-hour delay for the stock to even open. The Nasdaq kept the stock halted as it processed the buy and sell orders that came through this morning.

Still, Facebook raised $16 billion in what will go down as the third-largest public offering in U.S. history and the biggest ever for a technology company.

Major U.S. stock indexes were all higher in the hours leading up to the public offering. Once Facebook shares began to weaken, however, so did the market.

No comments:

Post a Comment