Facebook trading, few ‘likes’ on first day
Facebook Inc. shares fizzled on their first day of trade on the Nasdaq Stock Market, erasing early gains of as much as 18 percent to trade close to their initial public offering (IPO) price, Reuters reported.
The stock opened 11 percent higher and rose to $45 before rapidly heading south in frenzied trade, touching its initial public offering (IPO) price of $38. The No. 1 online social network raised as much as $18.4 billion in one of the biggest initial public offerings in U.S. history.
After a delay in the opening that drove up anxiety levels among traders and onlookers outside the Nasdaq, the company’s closely watched stock began trading at $42.05, compared with an IPO price of $38.
“A 15 to 20 percent pop is in the realm of possibility,” said Tim Loughran, a finance professor at the University of Notre Dame, before the start of trade. “Given they already moved their IPO range up and increased the size, that’s bullish to begin with.”
Some expect shares could rise 30 percent or more on Friday, despite ongoing concerns about Facebook’s long-term money making potential.