- Posted May 20, 2012 by
This iReport is part of an assignment:
Facebook Soars to a Resounding Thud
Hype and hyper. Like and more like. Buzz followed by buzz.
For the past couple of months everyone was talking about how Facebook was going to storm the stock market. Who should buy stock and who should wait? How much money would be raised and how richer would Mark Zuckerberg and company be?
Finally on Friday, the big day came for the initial public offering of the approaching-a-billion-members social network to go for sale on the market. The stocks opened at $38 a share with over 5 million shares traded. But at the end of the day, the price per share was only $38.23. It was considered a so-so opening that did not match the talk.
Yes, Zuckerberg and company made out like bandits. It made Zuckerberg feel secure enough of his financial future he tied the knot with long-time girlfriend, Priscilla Chan on Saturday, the very next day. Yet for all the money made compared to Google and Apple, it was sort of ho-hum.
In the hours before Facebook's stock began trading on the Nasdaq Stock Market for the first time, CEO Mark Zuckerberg reminded the company's 3,500 employees not to get caught up in the hoopla surrounding its long-awaited initial public offering.
"Right now this all seems like a big deal," Zuckerberg said before he pushed a button that rang Nasdaq's opening bell from company headquarters at 1 Hacker Way in Menlo Park, Calif. "Going public is an important milestone in our history. But here's the thing, our mission isn't to be a public company. Our mission is to make the world more open and connected."
Facebook's IPO, it turns out, wasn't as big a deal as expected.
One of the most anticipated IPOs in Wall Street history ended on a flat note Friday, with Facebook's stock closing at $38.23, up 23 cents from Thursday night's pricing.
That means the company founded in 2004 in a Harvard dorm room has a market value of about $105 billion, more than Amazon.com, McDonald's and Silicon Valley icons Hewlett-Packard and Cisco.
It also gave 28-year-old Zuckerberg a stake worth $19,252,698,725.50.
But for many seeking a big first-day pop in Facebook's share price, the increase of six-tenths of one percent was a letdown.
"This is like kissing your sister," said John Fitzgibbon, founder of IPO Scoop, a research firm. "With all the drumbeats and hype, I don't think there'll be barroom bragging tonight."
Added Nick Einhorn, an analyst with IPO advisory firm Renaissance Capital: "It wasn't quite as exciting as it could have been. But I don't think we should view it as a failure."
So what happened?
Seems like most of us are now singing along with Carly Simon:
We can never know about the days to come
But we think about them anyway, yay
And I wonder if I'm really with you now
Or just chasin' after some finer day
Is makin' me late
Is keepin' me waitin'
From the Cornfield, so much for the "most anticipated" IPO ever. Facebook it seems is just another stock.