I wrote about why I wouldn't buy facebook stock if it values the company at $100B. Friday's IPO did exactly the same and I stayed on the sideline. Shares of facebook traded between the offering price of $38 to $45 before settling down to $38 at the market close.
Today the shares closed 10 percent below Friday's closing price. The biggest question that comes to my mind right now is how much did the underwriters lost? I am guessing some people might lose their jobs. Additional 25% shares were offered just couple of days before the IPO and offering price increased from $36 to $38 (of course Morgan Stanley enjoyed additional fee). On the flip side, facebook investors and employees who dumped their shares in this IPO were the smartest ones and should have every reason to rejoice.
Today the shares closed 10 percent below Friday's closing price. The biggest question that comes to my mind right now is how much did the underwriters lost? I am guessing some people might lose their jobs. Additional 25% shares were offered just couple of days before the IPO and offering price increased from $36 to $38 (of course Morgan Stanley enjoyed additional fee). On the flip side, facebook investors and employees who dumped their shares in this IPO were the smartest ones and should have every reason to rejoice.
