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Was the Facebook IPO really that successful...?

 
 
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trev
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PostPosted: Mon May 21, 2012 1:18 pm    Post subject: Was the Facebook IPO really that successful...? Reply with quote

With all the hype and floatations such as Google you'd expect Facebook's share price to start high, then go stupid and finally close pretty high but going by a report in the Guardian newspaper, it seems it was only the banks who stopped it going badly wrong.

There's a blow by blow account of the Facebook IPO.

The basics:

Due to oddities in the market, it started out officially at $38 but the first trades made it at $42 (it doesn't explain why), however, after just 50 minutes there was a major drop back down to $38 again before a bit of a rally - see 12.18pm for the graph.

Strangely however, around this time there were loads and loads of $38.00 offers which could be people just waiting for it to fall and pick up cheap ones, but considering the number of shares some of these trades were offering to buy, these were people with deep pockets who all wanted to make sure it stayed above $38.00.

Speculation is that the banks who were behind the IPO stepped in when it looked like the price would crash and effectively rallied it back up which presumably means they're now sitting on a lot of shares. Potentially around 23 million if everyone sold to them.

By the end of the day the stock was back around the $38.23 mark so at least it's above what the original price was.

Some say this was a good thing for the banks who got the price spot on although they now (maybe) need to get rid of millions of shares, and it's possibly a good thing for investors who at least didn't lose money or too much money.

As for Facebook - it's now 6th on the top 10 companies on the Nasdaq with a worth of around $3.9 billion compared to Google's value of $39 billion. But Mark should be happy as he's worth than any of the top Google guys.

Now the 2 big questions:

- Will Facebook shares drop further when the banks unload?
- Will this affect things like Zynga who get most of their revenue from FB?

Trev
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paul
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PostPosted: Mon May 21, 2012 2:30 pm    Post subject: Re: Was the Facebook IPO really that successful...? Reply with quote

Trev wrote:
As for Facebook - it's now 6th on the top 10 companies on the Nasdaq with a worth of around $3.9 billion compared to Google's value of $39 billion. But Mark should be happy as he's worth than any of the top Google guys.


Are those figures right, Trev? I thought Zuckerberg was going to be worth around $18bn after the IPO, and am pretty sure that Google as a whole is worth well over $100bn.
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PostPosted: Tue Aug 21, 2012 9:25 am    Post subject: Reply with quote

Facebook dropped to half its starting value yesterday, reaching a low of $18.75 before recovering slightly.
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