Facebook IPO debut disappointing investors
Facebook stock debut on the inaugural day on the exchange floor last Friday disappointing investors so that the burden of technology stocks in the Nasdaq stock exchange. As a result, the Nasdaq stock index fell 34.9 points last Friday (1.24 percent) to a level of 2778.79.
Company stocks the world’s largest social network founded by Mark Zuckerberg last 8 years, first on the day listed, unlike previous expectations of investors. The fall in profit in the first quarter of this year and the performance of the stock of social media on the exchange floor who had previously not good enough to make up the stock which was greeted very enthusiastically by investors only edged up last Friday.
At the end of last week’s trading stock that has a code FB Facebook is closed only edged up 0.6 percent to U.S. $ 38.23 per share price of the first (IPO) of U.S. $ 38 per share. Although it had opened higher by U.S. $ 42.05, but did not last long and closed only slightly above its IPO price. Facebook does not match the movement of the stock investor would estimate between 10 percent – 50 percent on the first day.
This makes other technology stocks such as Zinga Inc (ZNGA) that supplies a game application (game) on Facebook dropped enough by 13.4 percent to U.S. $ 7.16. Even ZNGA stock had touched its lowest level at U.S. $ 6.4 and was stopped twice due to fall quite sharply.
Shares of other social networking LinkedIn (LNKD) also slipped 5.7 percent to U.S. $ 99.02, Groupon (GPRN) slid 6.7 persenke U.S. $ 11.58. Zynga and Groupon stock, both listed on the stock exchange late last year, it traded below its IPO price.
Although the disappointing debut of its stock and weak stock performance and affect other social media, but investors are still optimistic that Facebook will be strengthened. In every new sector, in this case social media, some will be losers and there is certainly one that will be the winner. “Although disappointing on the day first, clear up a winner and the other is not,” said Randy Warren, chief strategist at Financial Warrant Service.
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