Posted on 05/18/2012 1:18:23 PM PDT by Red Badger
With Facebook shares trading close to their $38 offer price and revelations that retail investors got a larger-than-expected slice of the $18.4 billion IPO, market watchers are questioning whether the social network’s debut was overhyped — not just in the media, but in the investor community.
Buy-side anticipation of a huge Day One price pop was high, and yet as of lunch time on Friday, Facebook shares hadn’t crested $45.
Experienced bankers say that with a new issue of this size, moving the shares beyond the single-digit percentage range can be tough, and that Morgan Stanley [MS 13.35 -0.11 (-0.82%) ], the lead bookrunner on the deal, has done an admirable job at keeping the stock trading in relatively stable condition.
GM [GM 21.18 -0.43 (-1.99%) ], for instance, which was an $18.1 billion IPO, only traded a few percentage points above its new issue price on its first day of trading late in 2010. Prior to the first day of trading, bankers said they didn’t expect a more than 10% upsurge on day one, given the deal’s size.
However, with anecdotal reports that some institutional investors got more shares than they were expecting, and new revelations that, according to two people close to the matter, the retail allocation of Facebook IPO shares was more than 20 percent, marking an all-time high for a new issue, some market participants are wondering whether the investor excitement toward the deal was overplayed earlier this week.
(Excerpt) Read more at cnbc.com ...
Is it wrong that I want it to plummet on Monday?
“Wrong” is a strong word, “unkind” might be more appropriate. :)
All those insiders needed someone to sell to today...
Shades of the dot-com bubble!
Monday moring will be very interesting for FB...
0.6% per day x 250 trading days per year = 150% per year.
How the hell does Facebook make that kind of money?????
Traders in a down economy are not hopping on this band wagon as would have years past, then what do I know.
The Facebook IPO was way over-hyped. It was even over-hyped by several shows onFox Business Channel that focused on how over-hyped it was.
Ads ? No Ads so sad
After today’s poor showing, I’d expect Monday to be a sell at the bell...........
Exactly. Everybody bought at the bell, computerized trades, then waited for the pop-up price that never went anywhere. They were expecting it to double in and hour............
Not so much hype as obsession. I say BFD. If it goes up, it goes up. If it goes down, it goes down.
It is what it is. Anyone who invests more than they can afford to lose is a fool or very lucky.
Ads and eyeballs............
Underwriters bought Facebook’s stock to keep it from falling below the IPO price ?
It’s the karma of being associated with Obama.
If so, we’ll buy more.
We didn’t buy very many shares today. But I think there will be steady FB use and thus a steady increase to the shareholders.
We bought today not looking for a quick buck, but because we think the business will remain profitable.
BUT FOR, the underwriters, FB would have tanked today.
Too many shares and way overpriced.
It’s only VHT activity in the markets ,, no retail customers ... don’t know how long they can pretend..
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