AfterDawn: News

Facebook IPO fails to impress

Despite hype not seen since Google's IPO in 2004, Facebook's debut in the market has failed to impress investors with shares up just 2 percent as of writing.

Priced initially at $38, giving the company a value of $104 billion, the shares are now trading at $39, leaving the social networking giant with a $107 billion valuation.



Says one market broker: "We have got some unhappy guys out there. They were hoping for Facebook to be considerably better. I bet there are a lot of disappointed people in the market."

The stock jumped as high as $45 today but has quickly returned to earth. Popularity of the shares are certainly not to blame as 450 million have already traded and the NASDAQ is even having issues filling orders due to such huge demand.

Facebook, like other Internet-based companies in the new "social bubble" will trade at a massive premium to its earnings. While companies like Apple trade at just 14 times what they bring in, Facebook will trade at 107 times.

The site has 920 million users.

Written by: Andre Yoskowitz @ 18 May 2012 15:14

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• 3 comments

• hearme0

  I just so hate Facebook. Crappy content, lame games, a site that doesn't flow, friend hoarders galore and people trying to befriend you when in high school.............you hated them.
  
  Now me..........I have 30 total friends, my shit's locked down tight and I changed my last name to make it very very very difficult for others to simply "search" me.
  
  I just don't see the fascination of knowing "what others are doing now". Don't care much either.

  18.5.2012 16:23 #1

• dude845

  Originally posted by hearme0: I just so hate Facebook. Crappy content, lame games, a site that doesn't flow, friend hoarders galore and people trying to befriend you when in high school.............you hated them.
  
  Now me..........I have 30 total friends, my shit's locked down tight and I changed my last name to make it very very very difficult for others to simply "search" me.
  
  I just don't see the fascination of knowing "what others are doing now". Don't care much either.
  I on the other hand really enjoy facebook. Content is based off yourself and your friends more than anything. More interesting your friends are the less crappy. I personally enjoy connecting with people I knew from high school (so be it I was friends with a lot of them and I am in college now.
  
  Fb for me isn't really locked. Friends of Friends can only find me and I really have nothing to hide or that could be used against me if others found out so I could care less if someone finds me.
  
  I guess it's different by generations :D
  
  
  ---
  
  As for the IPO I don't think anyone was planning to actually hold out long with it. Quick buy, let it go up high and sell fast. Not a smart investment otherwise.
  

  Can't have one of my pro sigs, cause they go over memory limit and saving them the Jpeg, or gif lowers quality :(
  

  18.5.2012 16:49 #2

• JST1946

  There isn't much about Facebook that impresses me period.
  

  19.5.2012 20:14 #3