Facebook IPO: Social Network Stock Fizzles as Market Closes

Facebook has only a fractional gain on first day as a public company

The closing bell has sounded on Facebook's first day as a public company, and the result could safely be characterized as "meh."

The social network gets the honor of being the biggest debut for a technology company in U.S. stock market history, but CEO Mark Zuckerberg's brainchild enjoyed only a fractional gain on its initial public offering price of $38 a share. 

Also read: Facebook IPO: 5 Warning Signs That Have Investors Worried

The site's stock closed the day up 23 cents, or 0.6 percent to $38.23. It slipped from that perch in after-market trading. 

Facebook opened trading at roughly $42 a share, but continued to slip as the hours ticked by in what was a tough climate for social media stock. Zynga, Pandora, and LinkedIn all closed the day down from the start of trading on Friday. 

Despite sputtering on during its NASDAQ coming out, Facebook is still expected to raise between $16 billion and $18 billion from IPO. Moreover, its valuation is now pegged at north of $100 billion.

Facebook's public debut is the third largest IPO in U.S. history, behind the $19.7 billion raised by Visa in 2008 and the $18.1 billion generated by General Motors in 2010, according to Reuters.

  • PNK

    Why don't they use the same “f” font as in the logo, for the blurb you see “like us on Facebook” ? It's an altogether different font, the F is capitalized… anyway, I've wondered that.
    (these are the important things…)

  • horseman

    ”This looks like it could be a BIG STORY next week
    The Facebook Bellydance went Bellyup
    Things went wrong. People lost confidence (HOW could anybody SANE have
    confidence in Facebook ? Whats “confidence” got to do with it anyway? Sigh)
    Maybe next week – OH GOSH – the Facebook share price will fall below the IPO
    intro price of $38
    This will be a disaster for modern neoliberal No Alternative mrs Thatcher
    market capitalism, y'know
    And I hope you're ready for it” — SAYS RIGHTWING FRIEND IN OZ

  • horseman

    facebook or Facebook, nook or Nook. Yahoo or Yahoo! (with Xclame mark)

  • horseman

    The social network priced its shares at $38 apiece, valuing the company at $104 billion. The average first-day “pop” for a technology company is 32 percent; if Facebook follows that trend, it’ll be worth $137 billion by day’s end. But there’s little about Facebook that’s average, including its public offering. This is the technology’s biggest initial public offering and history’s second-biggest IPO, period, and it will raise about $16 billion. Statistics suggests that the first-day pop—if there is one—will be more modest than average.

  • horsemanu

    I can explain it but it would be VERY boring Basically these criminals and charlatans are selling stuff they DONT have (shares at a hoped for higher price than the start price) but they dont give a fuck because, I hope you knew already, Oh Bummer and his pals like Geithner gave an exact 107 billion dollars, in 2008-09 to Morgan Stanley the lead underwriter of this Facebook Farce so Morgan Stanley really doesnt give a flying eff if it loses a trifling few billion bucks. Who cares ?