Tuesday May 22, 2012 : CONFLICTING VIEWS ON FACEBOOK'S IPO
Despite hype and hysteria, social networking site's IPO underperforms
Following its frenetic IPO launch at $42.05 a share last Friday, social networking site Facebook was back at $38.23 – Thursday's proposed price – by afternoon trading Monday, disappointing many analysts and investors. During initial trading the stock rose as high as $45, only to drop back as the day wore on.
Media reports were that Nasdaq glitches didn't help – initial trading was delayed for half an hour due to issues with some orders.
However, there were many positive voices, with one analyst telling CNBC: “Fifty-three percent operating margins, 901 million users around the world. … They can provide detailed targeting to advertisers.”
Observers will be watching Monday's trading closely.