The dust is beginning to settle on that first day of trading last Thursday, when nearly 118 million shares exchanged hands. Yesterday, during the fourth day of trading, volume fell to 6.3 million shares, a sizable number, but just 5% of day one's trading. It's still very early, but shares are down about 7% since the first day close, and 16% from the high price on that day.
Those investors who bought at the high can't be happy at this point, but unless you are able to get shares at the IPO price, it can be dangerous to take a position in the early days of trading, especially in such a high-profile and much-anticipated offering.
Facebook's (FB) first several days were much more frantic, and it was a larger offering, with 574 million shares traded on day one, and 13% of that, or 74 million on day four. By then, shares had fallen 16% since the first close, and 29% from the day one high.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV