As Onyx posted, the underwriters had to step in to support the initial offering price of $38, or it would have tanked. Not a good sign. The $38 price was considered ‘conservative’ yesterday. By Monday it may be considered ‘speculative’.
How can anybody invest in a corporation that has no real product or service to sell, and is basically valued as the sum total of its parts, i.e., servers/real estate/office furniture? It may be a fad that people get tired of in a couple of years..........
Well that’s a fine conspiracy theory but I deal only in facts. And the facts are that IPOs are SUPPOSED to stay relatively close to the initial set price.
As for “no real product or service” that’s like 90% of the companies we have. Anybody that’s ad supported, meaning almost all the internet companies and most of the entertainment industry, are the same. There’s lots of stuff that may be a fad.
The same could have been said of google at the time it hit the market, or yahoo. The problem was that people got almost all they asked for in the ipo which rarely occurs. So people or institutions who placed orders of 500,000 shares expecting only to get 100,000 shares actually got the full amount. The problem then is that they dont actually have the capital required to make the transactions so they had to sell right away, which basically was like a barrier not allowing it to go up. Iactually think next week will look much better since it was able to survive all the mass sellings from people who couldnt afford what orders were placed. Im an engineer tho, what do i know...