Saturday, May 19, 2012
Facebook’s long awaited IPO dominated the news Friday.
Wall Street, salivating over the anticipated value of the social-media giant, said the company was worth as much as $104 billion, opened at $38 a share, selling some 82 million shares in the first 30 seconds. Seven minutes after the opening, 110 million shares had traded, with the stock eventually reaching a high of $45 a share. But by 4PM, the close of trading day, the price for a share of Facebook had settled to $38.23, an upside of just .23 cents a share.
Which begs the question? Was the deal over-hyped and over-valued? Some on Wall Street say yes. While the IPO earned Facebook founder and CEO, Mark Zuckerberg billions of dollars, institutional investors saw little return and small investors were virtually locked out from a chance to invest in the IPO.
My view is, the Facebook IPO was much ado about nothing.