Facebook Debut Falls Flat

    In this image provided by Facebook, Facebook founder, Chairman and CEO Mark Zuckerberg, center, rings the opening bell of the Nasdaq stock market, Friday, May 18, 2012, from Facebook headquarters in Menlo Park, Calif. The social media company priced its IPO on Thursday at $38 per share, and beginning Friday regular investors will have a chance to buy shares. (AP Photo/Nasdaq via Facebook, Zef Nikolla)

    Zef Nikolla

    Despite starting trading at 11 percent above the $38 offering price, the much-anticipated Facebook stock quickly fell back from its peak $45 to close at $38.23. Analysts had expected the stock to rise between 10 and 50 percent. The slump dragged down other Internet and social-media companies planning on riding Facebook’s wave. The company’s slow debut probably won’t affect business, and some attribute the enormous $104 billion IPO valuation as an overreach. Among the winners at Facebook as the company goes public are Bono and many newly minted millionaire stockholders. It’s been estimated that as a result of the IPO, $2 billion in income-tax revenue will help lower California’s budget deficit.

    Read it at Reuters