Facebook Shares Fall Below IPO Price

Redbulls · 1 Facebook Shares Fall Below IPO Price Mon May 21, 2012 8:46 pm

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Facebook shares dropped below their debut price of $38 (£24) in trading on Monday raising concerns about the stock if its lead underwriter Morgan Stanley (EUREX: DWDF.EX - news) stops propping it up and investors who were hoping for a surge in price decide to pull out.

Shares in the social networking company ended their first day flat, after an initial surge to $43 (£27).

The company has a host of high-profile investors, including Apple (NasdaqGS: AAPL - news) co-founder Steve Wozniak and U2 frontman Bono, and more than 500 million shares exchanged hands on the stock's first day of trading.

The Nasdaq exchange has apologised for a glitch in its system affected trading in newly-issued Facebook shares on Friday.

The US stock exchange is planning to revamp its technology systems that handle IPOs after trading in Facebook shares was delayed by half an hour as the company went public and investors were left unaware for hours as to whether their buy and sell orders had been executed.

With shares at $38 (£24) a piece, the company was valued at $104bn (£66bn) on Friday, making it more valuable than Amazon, Disney (NYSE: DIS - news) , McDonalds or the Ford Motor Company.

Facebook has more than 900 million active users globally who log in at least once a month. But the firm makes only a tiny proportion of its income from its users - mainly through advertising.

The founding of the social networking site by Mark Zuckerberg in a Harvard dorm room was made into a film in 2010.
http://uk.finance.yahoo.com/news/facebook-shares-fall-below-ipo-133830402.html

econ · 2 Re: Facebook Shares Fall Below IPO Price Tue May 22, 2012 7:30 am

econ

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another over priced IPO like in SL???

sriranga · 3 Re: Facebook Shares Fall Below IPO Price Tue May 22, 2012 10:11 am

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econ wrote:another over priced IPO like in SL???

That's the fact.
Plus world wide economical turbulence also affected the IPO.(Greece,Spain problem,China GDP decreasing, Iran OIL etc)

Whitebull · 4 Re: Facebook Shares Fall Below IPO Price Tue May 22, 2012 11:16 am

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econ wrote:another over priced IPO like in SL???

Seems samething happening everywhere.

stumpy · 5 Re: Facebook Shares Fall Below IPO Price Tue May 22, 2012 12:54 pm

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I think, NYSE traders are learning from from CSE! lol!

smallville · 6 Re: Facebook Shares Fall Below IPO Price Tue May 22, 2012 8:29 pm

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stumpy wrote:I think, NYSE traders are learning from from CSE!

Or have our guys iven lesson to them? he hee Twisted Evil

Kithsiri · 7 Re: Facebook Shares Fall Below IPO Price Tue May 22, 2012 8:41 pm

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Despite this obvious phenomenon that we have seen recently (at least in Sri Lanka), I was wondering how & why those IPOs get over-subscribed?

Redbulls · 8 Shares In Facebook Continue To Fall Tue May 22, 2012 8:53 pm

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By (c) Sky News 2012 | Sky News – 4 minutes 11 seconds ago
Facebook shares have continued to fall on their third day, opening down by around 8% in early trading.

The shares continued to drop below their debut price of $38 (£24), at one point reaching just over $31 (£19).

It follows a fall of more than 13% on their second day of trading.

The move in price has given rise to concerns over the value of the stock, which had its hotly-anticipated debut on the Nasdaq (Nasdaq: ^NDX - news) stock exchange on Friday.

It has led to some speculation that its IPO (initial public offering) partner, Morgan Stanley (EUREX: DWDF.EX - news) , was buying shares itself to keep their value above the opening price.

The listing saw the world's largest social network valued at $104bn (£66bn) - making it more valuable than Amazon, Disney (NYSE: DIS - news) , McDonalds or the Ford Motor Company.
http://uk.finance.yahoo.com/news/facebook-shares-continue-fall-third-134813984.html

sanjeewa88 · 9 Re: Facebook Shares Fall Below IPO Price Wed May 23, 2012 8:21 am

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SEC, FINRA to review Facebook issues, Nasdaq sued

By Suzanne Barlyn and Ryan Vlastelica

(Reuters) - Two top U.S. financial regulators said the issues around the initial public offering of Facebook should be reviewed, putting fresh pressure on the company, its embattled lead underwriter and the Nasdaq.
After Friday's nearly flat close and Monday's 11 percent plunge, Facebook shares closed 8.9 percent lower at $31 on volume of 101 million shares. At that price the company has shed more than $19 billion in market capitalization from its $38-per-share offering price last week.

Investors were still shaking their heads over the botched opening trading of Facebook when Reuters reported late Monday that the consumer Internet analyst at lead underwriter Morgan Stanley cut his revenue forecasts for Facebook in the days before the offering, information that may not have reached many investors before the stock was listed.

JPMorgan Chase and Goldman Sachs, which were also underwriters on the deal, each revised their estimates during Facebook's IPO road show as well, according to sources familiar with the situation.

Reuters reported that Morgan Stanley selectively disclosed the change in Facebook estimates, which drew the attention of the main regulator of U.S. brokerages.

Full Reading: http://finance.yahoo.com/news/sec-finra-review-facebook-issues-005837771.html