- U.S. Army hails success with drone-shooting laser
- John Kerry: Israel-Palestinian peace deal paved for April
- India diplomat who touts women’s rights busted for $3 wage to nanny
- MSNBC host Ed Schultz paid $252K by unions in 2012-2013
- Korean War memorial ordered to take down Christian cross
- Billy Graham near death, ‘close to going home to be with the Lord’
- SeaTac, Wash.: City’s new $15 minimum wage heads to court
- Obama mulls support for Islamists in Syria, with conditions
- Obama ‘birther’ theories float, as Hawaii health director killed in crash
- U.S. drone faulted for killing 14 ‘innocent civilians’ at Yemen wedding
Facebook up falls flat in public debut
NEW YORK (AP) - After all the hype, Facebook’s first day as a public company ended where it began. Its stock closed at $38.23, up 23 cents, after pricing Thursday night at $38 per share.
After an anxiety-filled half-hour delay, its stock began trading on the Nasdaq Stock Market for the first time as investors were finally able to put a dollar value on the company that turned online social networking into a global cultural phenomenon.
The stock opened at 11:32 a.m. at $42.05, but soon dipped to $38.01. By noon, it was up again at $40.40, a 6 percent increase. It fluttered throughout the afternoon, but it never hit the double-digit jump that many Facebook-watchers had expected. By the end of the day, more than 500 million shares had changed hands
But as many people looked for a big first-day pop in Facebook’s share price, the single-digit increase was somewhat of a letdown.
Indeed, the small jump in price could be seen as an indication that Facebook and the investment banks that arranged the initial public offering priced the stock in an appropriate range. It’s also a supply and demand issue. Facebook offered nearly 20 percent of its available stock in the IPO, so there was enough to meet demand. In comparison, Google offered just 7.2 percent of its stock when it went public in 2004 _ and rose 18 percent on day one.
To IPOdesktop’s Francis Gaskins, it means mom-and-pop investors are becoming “much more educated and careful” about not buying into hype. And he said that the banks taking Facebook public have learned from the 10 IPOs of social media companies in the past year and are better able to gauge how much stock to make available in an initial offering.
It might not have been possible for the social network to live up to the hype that led up to its IPO. It’s Facebook, after all, a place where people are emotionally invested in endless online diversions and rekindled friendships, an endless depository of baby photos, favorite songs and fleeting memories.
“It’s probably one of the first times there has been an IPO where everyone sort of has a stake in the outcome,” said Gartner analyst Brian Blau. While most Facebook users won’t see a penny from the offering, they are all intimately familiar with the company.
Earlier Friday, the company’s 28-year-old CEO, Mark Zuckerberg, smiled as he rang the opening bell from Facebook's headquarters in Menlo Park, Calif. Surrounded by cheering Facebook employees and wearing his signature hoodie, he pushed the button that signals the opening of the stock market in New York. The morning’s events followed an all-night “hackathon” at the company, where engineers stayed up coding software and conjuring up new ideas for Facebook and its 900 million users.
“Right now this all seems like a big deal. Going public is an important milestone in our history. But here’s the thing, our mission isn’t to be a public company. Our mission is to make the world more open and connected,” Zuckerberg said. “In the past eight years, all of you out there have built the largest community in the history of the world. You’ve done amazing things that we never would have dreamed of and I can’t wait to see what you guys all do going forward.”
Afterward, employees tried to get back to business as usual, building the company under immense new pressure to meet shareholders’ expectations. To remind everyone not to get caught up in the hoopla, Facebook’s employees were given t-shirts that read “Stay focused & keep hacking.”
On Thursday, Facebook and the investment bankers settled on a price of $38 per share. The company and its early investors raised $16 billion in the offering, which valued Facebook at $104 billion. That makes Facebook the most valuable U.S. company to ever go public.
Now, the stock market will begin assigning a dollar value to Facebook that will rise and fall with investor whims. It will be subject to broad economic forces and held accountable for profit it earns _or loses_ from one quarter to the next.
By Mangosuthu Buthelezi
Memories of a long brotherhood tempered in common struggle
- U.S. Navy-China showdown: Chinese try to halt U.S. cruiser in international waters
- Obama birther theories float, as Hawaii health director killed in crash
- Obama's Afghanistan experts stumped on U.S. death toll, war costs during hearing
- House budget bargain faces Senate filibuster; Republicans line up to oppose
- Billy Graham near death, close to going home to be with the Lord
- PRUDEN: The last living witnesses; they wore the yellow star and remember the Nazi terror
- NAPOLITANO: A conspiracy so vast
- American bourbon now better than Scottish whisky: U.K.-born expert
- North Korea's official report on Jang Song Thaek
- Dr. Ben Carson disavows efforts at presidential draft
Independent voices from the The Washington Times Communities
A stat-head’s outlook, direct from his worn in couch cushion.
John Glaser turns his pen toward foreign policy and international relations around the world
A conservative commentator and satirist takes on the worlds of politics and entertainment in pursuit of truth, justice and all things America.
Politics, economics, and business from a real world perspective.
Extraordinary day at Redskins Park
White House pets gone wild!
Let it snow