After falling all the way to its IPO price of $38, Facebook (FB +8.9%) has bounced, and is now...


After falling all the way to its IPO price of $38, Facebook (FB +8.9%) has bounced, and is now trading at $41.37. That's helped the NASDAQ, down ~1% at one point, head back towards breakeven. Zero Hedge notes over 30M shares traded at $38. "That's some serious underwriter buying," it quips.

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Comments (17)
  • Advill
    , contributor
    Comments (2321) | Send Message
     
    At this hour almost 50% (263,829,848) of the IPO volumen has been trade.....are you bullish?
    18 May 2012, 12:41 PM Reply Like
  • medzjohn
    , contributor
    Comments (491) | Send Message
     
    How long can the underwriters tread water?
    18 May 2012, 12:43 PM Reply Like
  • enigmaman
    , contributor
    Comments (2868) | Send Message
     
    FB has fallen flat on its FACE BOOK, talk about an underwhelming open for one of the most touted IPO's barely eking out a gain, Im sure all the early IPO buyers are super excited about there 8% gain, looks like they will end up long term holders, HA
    18 May 2012, 12:58 PM Reply Like
  • desertlizzy
    , contributor
    Comments (4) | Send Message
     
    Disappointed in FB's debut, hardly any positive moves, I was like In &Out Burger. No Gains, No Losses. Will watch the future of this Book!
    18 May 2012, 01:21 PM Reply Like
  • DougRk
    , contributor
    Comments (1899) | Send Message
     
    Rather than characterizing this as underwhelming, this should be scored as a win for the read on the IPO price. $38 was an accurate read on demand. Kudos to the strategy of getting a large retail investor involvement. Keeps the day traders away and leads to some stability. Underwriter buying of less than 10% of proceeds (apparently) is modest in the scheme of weighted volume. This all puts the LinkedIn IPO to shame.
    18 May 2012, 01:33 PM Reply Like
  • enigmaman
    , contributor
    Comments (2868) | Send Message
     
    Oh instead of underwhelming lets call it a "win" for the underwriters IPO price call, I guess if you want to put a positive spin on this thats one way, another is the " early wanna be flippers got baked in the squat" and Im sure the issuers are telling them all its really a win though not one they can buy a new car or house with, its morally satisfying
    18 May 2012, 01:59 PM Reply Like
  • DougRk
    , contributor
    Comments (1899) | Send Message
     
    I think it's fair to say those who should be most rewarded are the ones who got in very early. Why should day traders looking for a big pop get the gain?
    18 May 2012, 04:16 PM Reply Like
  • User 168446
    , contributor
    Comments (108) | Send Message
     
    Because that is what we do. $34 is coming once the underwriters have dumped the greenshoe. I'll try to buy some there with a tight stop.
    18 May 2012, 07:56 PM Reply Like
  • tigersam
    , contributor
    Comments (1707) | Send Message
     
    Flop IPO
    18 May 2012, 02:46 PM Reply Like
  • DougRk
    , contributor
    Comments (1899) | Send Message
     
    How are you defining this? It scored on two fronts: 1, wide retail investor interest and allocation. 2, the price fetched was nearly perfect, maximizing dollars for the company.

     

    It flopped if the goal was to enrich single day speculators. No offense, but your attitude is based on the bastardization of the marketplace.
    18 May 2012, 04:21 PM Reply Like
  • tigersam
    , contributor
    Comments (1707) | Send Message
     
    With the publicity and hype this company got it should have been open over $100.

     

    All these social companies are speculations including Zinga, Linked etcs.

     

    If you want to invest into no speculations company stay with Apple and Google.

     

    So this is a flopped IPO.
    18 May 2012, 04:51 PM Reply Like
  • DougRk
    , contributor
    Comments (1899) | Send Message
     
    If it had opened significantly above the offering, then the underwriters would have failed. Their duty is to the issue, not to speculators or the media. Your expectation was the mistake.

     

    Not a personal insult to you. I'm hearing many people express the same disappointment. It's just a misunderstanding of what the purpose of an IPO is.
    18 May 2012, 05:05 PM Reply Like
  • tigersam
    , contributor
    Comments (1707) | Send Message
     
    Most IPOs you are correct but in FB's case you are incorrect. There was no fun after it started trading. I think FB will loose lot of business because of this. All companies will think FB is not craze anymore and stop advertisements.
    18 May 2012, 07:08 PM Reply Like
  • DougRk
    , contributor
    Comments (1899) | Send Message
     
    Well that I will grant you: it was a snoozefest as far as IPOs go. LinkedIn and Groupon were major fun. So there is some risk that it failed in creating buzz. But man, the company just IPO'd at $100B+. That's staggering and puts FB in rarefied air. That fact alone gives them credibility in tapping ad source revenue going forward.
    18 May 2012, 09:06 PM Reply Like
  • desertlizzy
    , contributor
    Comments (4) | Send Message
     
    @dsr70 -

     

    Maybe Yes or No. The economy being what it is, would be nice to
    make a little in the stock market. At this point, I don't trust IPO's, since being burnt a few times this last year (social stocks) and so goes the general public, since FB disappointed. Whether the true meaning & purpose of IPO needs to be reeled in & rewound into reality or not. It was a lotta hype for nothing. FB should've stuck to the original starting price. It gave a bad after-the-fact taste to all investors... and the newbies who are our future.
    12 Jun 2012, 05:51 PM Reply Like
  • JRLUTZ
    , contributor
    Comments (31) | Send Message
     
    Just give FB time it will be a magnet to the Mobile User's and that will make up the majority of its base and Income. No one has memory about Google price and how long it took for it to break past $100.00 a share .................. I look at FB like I look at Regn Stock nobody wanted that stock 6 to 8 yrs ago and recently that stock has broken the $135.00 per share barrier. Patience people alot of investors want to become a Zillionaire in less than a day....
    18 May 2012, 03:13 PM Reply Like
  • yadrummer
    , contributor
    Comment (1) | Send Message
     
    What's with the report from Fidelity that the FB trades have delayed??? They couldn't handle the volume?? How much has that affected the price and perception by the buyers. I put in a order, and then cancelled way after it should have executed... but the price wasn't going up!
    18 May 2012, 03:50 PM Reply Like
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