Economy Briefs: Investors not viewing social media like tech
NEW YORK — The lackluster stock market debut for Facebook suggests investors are not ready to jump in and create another tech bubble despite big expectations for social media, analysts say.
Facebook closed out its first full week of trade with a loss of 16 percent from its offering price of $38, in a huge disappointment after a much-hyped initial public offering worth $16 billion, the biggest for a tech firm.
The stock failed to live up to the anticipation of some who thought investors would be stampeding to get a piece of the network which has 900 million users.
“This is by no means the end of social media. It is going to continue to grow and expand,” he said.
But he said that during the tech bubble, “Venture capitalists invested $150 billion in two years. In the last two years we invested about $60 billion. There is much, much less money in the system right now. That’s critically important.”
Hail storm pounds new Ford Escape models
A big hail storm last month pounded thousands of Ford’s popular new Escape SUVs as they awaited shipment to car dealerships. But the damage won’t slow the roll-out of the new model, a spokesman said.
The hail storm hit Louisville, Ky., on April 28 and damaged about 3,500 Escapes, according to a report in the (Louisville) Courier-Journal. The cars are assembled at a nearby plant.
Todd Nissen, a spokesman, said the cars were undergoing final quality checks when the storm hit. The damaged units won’t be sold to the public as new cars, he said.
Late night blaze destroys bell factory