On Friday the much awaited Facebook IPO began trading. With a storm of issues surrounded this initial offering, it appears that fundamentals overwhelmed hype, which is not always the case. I happened to be with a group of multiple professional investors on Friday, and while we all thought the price was rich, no one called the disappointing (to Wall Street) price action that has ensued.
The Facebook IPO was scheduled for a later am morning issuance so the employees and managers of the company could have a convenient 9 am pacific time viewing. While the NASDAQ made concessions and moved the original open to the west coast, they may have wished they had stayed in New York. After almost 30 minutes of unscheduled delays, trading began as orders were rushed, dumped, and what only a legal battle will soon determine, left few knowing who actually owned shares by the end of the day.
Not withstanding the bad opening and the glitches in the systems, it appears a richly valued company with extreme expectations has done the unthinkable “Broke the Offering price” in less than one day of its trading.
Here is a chart through mid morning trading:
Time will tell how this turns out, but given the questions we have heard from many, we thought it worth mentioning this Monday morning!
Have a Great Day!
JK
214-706-4300