After all the hype, Facebook’s newly traded stock plunged nearly 11% between its opening day (Friday, May 18) and the following Monday (May 21). Compare that to Google, whose stock never even fell back to their IPO price of $100.00 per share, let alone went below the initial offering price. Facebook’s IPO price opened at $38.00 per share, and by the close of the market on Monday, it had dipped down to $34.03, a decline of 10.99%.
That decline, of $3.97 per share, took Facebook’s market value down by a cool $19 billion.
Said Frank Lesh of FuturePath Trading, “At the moment it’s not living up to the hype,” adding “Look at the valuation on it. It might have said ‘buy’ to a few people, but boy it was awfully rich.”
Observed Joe Saluzzi, with Themis Trading, “It was just a poorly done deal and it just so happens to be the biggest deal ever for Nasdaq and they pooched it, that’s the bottom line here.”
Our gut told us that Facebook stock would be a much bigger gamble than the hype suggested; while they may not be a flash in the pan, they just have too many privacy problems, and no real clear profit center. So we never intended to buy Facebook stock, nor do we now.
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We are curious, however, to know who among our readers has purchased, or plans to purchase, Facebook stock, and why. We’d also like to hear from you if you don’t plan to purchase Facebook stock. Either way, we want to hear from you!
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Not a chance in the world I would buy FB stock. The privacy issues are a nightmare, and I’m sorry, any company that wants to blast my private info all over the internet is not getting my help to do it. I use FB but I keep my info to the absolute minimum. I’ve heard from others that they are asking for mobile phone # or personal ID if you don’t have a mobile. Sorry, they won’t get eiter from me.