Facebook Opens At $42.05; Slips From There To $40 And Change
By Eric Savitz
Well, the deed is done. Facebook, which priced its IPO at $38 a share, opened for trading this morning at $42.05, 10.7% above the IPO price. Subsequent trades have been lower, and the stock a few minutes after the start of trading is a little over $40.
Some investors likely expected a higher pop in the stock, but we're still talking about a company with a market cap north of $100 billion.
Let's not be greedy.
The truth is, if the stock closes within the vicinity of $40, with a modest single-digit percentage gain, then the investment bankers will have done an excellent job of maximizing the take for Facebook here. After all, the goal is not to give a windfall to the those investors who finagled a way to get IPO shares; the goal is to provide a pile of capital for Facebook and to offer liquidity to insiders. A 1999-style pop of 50%-75%-100% or more would not have been a good sign. A steady price close to the IPO price would be a lot better for the market, even if it disappoints investors who were hoping for a quick score.
- This Photographer Just Made $15K In One Day On Instagram
- Five Years Into Bull Market Bears Still Waiting For The Drop That Hasn't Come
- More Details On Newsweek Journalist's Interview With Alleged Bitcoin Creator
- Great Workplaces For Your Mental Health
- 16-Year-Old Tennis Pro Belinda Bencic Has 11 Sponsors But She's No Millionaire
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV