Facebook sinks

[Joni_78]

Down to $33 now :D

(Reuters) - Facebook stock sank on Monday in the first day of trading without the full support of the company's underwriters, leaving some investors down nearly 25 percent from where they were Friday afternoon.

Facebook's debut was beset by problems, so much so that Nasdaq said on Monday it was changing its IPO procedures. That may comfort companies considering a listing but does little for Facebook, whose lead underwriter Morgan Stanley had to step in and defend the $38 offering price on the open market.

Without that same level of defense, its shares fell $4.64 to $33.67 in the first minutes of trading. That represented a decline of more than 12 percent from Friday's close and about 24.4 percent from the intra-day high of $45 a share.

Volume was again massive with more than 52 million shares trading hands in 15 minutes. Nearly 581 million shares were traded on Friday in the five or so hours that the stock was open.

As the stock fell, there was a long list of questions -- ranging from whether the underwriters priced the shares too high to how well prepared the Nasdaq was to handle the biggest Internet IPO ever -- and few immediate answers.

"It was just a poorly done deal and it just so happens to be the biggest deal ever for Nasdaq and they pooched it, that's the bottom line here," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

NASDAQ CHANGES

Nasdaq said Monday morning the changes it was making would prevent a repeat of what happened Friday, when glitches prevented some traders from knowing for hours whether their trades had been completed.

The exchange also said it would implement procedures to accommodate orders that were not properly executed last week.

A source said Morgan Stanley's brokerage arm still had a "large number" of share orders from Friday that were not confirmed, which it was working to resolve.

A Facebook spokeswoman declined to comment on the share price issue.

But analysts said that after the initial frenzy, investors were quickly becoming cautious about the stock.

"Investors are increasingly aware of the risk embedded in the stock price. There are real concerns about growth and advertisers' frequent lack of certainty how best to use Facebook, along with rising costs and ongoing acquisition risk," said Brian Wieser at Pivotal Research Group, who has a $30 target on the stock.

"At $38, the stock is priced for perfection in a manner that implied that risks were negligible."

(Reporting By Chuck Mikolajczak, Jennifer Saba and John McCrank in New York; Writing by Ben Berkowitz in Boston; Editing by Edward Tobin and Maureen Bavdek)

Source

[Hum]

Posted here:

https://www.neowin.net/forum/topic/1078447-facebooks-ipo-splutters-as-bankers-struggle-to-prevent-first-day-loss/

[neufuse Veteran]

Posted here:

http://www.neowin.ne...first-day-loss/

this isn't first day though, this is second day and they already lost 12% of their value today alone! I am GLAD I didn't invest in FB right now, sure it might change in the future, but it's sinking like a stone right now... their valuation is bad, and that's a major problem for stock value

[episode]

Posted here:

http://www.neowin.ne...first-day-loss/

Article about the first day of trading != article about the second day of trading. Thanks though.

[Hum]

^ OK -- tomorrow I will post about 3rd day trading ... :laugh:

[Calum Veteran]

^ OK -- tomorrow I will post about 3rd day trading ... :laugh:

Considering this is Back Page News, the IPO is still fresh, and this is the first sink from a new full day of trading, I don't believe the threads should be merged :) I don't expect we'll see many articles specifically reporting on Facebook's stock price.

[Charisma Veteran]

Haha, when I first saw this title at the top, I thought it said "Facebook sucks". Which it may as well have, I suppose.

[Calum Veteran]

[. . .] :D [. . .]

:(

I would like Facebook to do well :p

[+Frank B. Subscriber²]

Dotcom bubble 2.0 burst imminent?

[#Michael]

I don't get this...why do you all want a company to fail? What is in it for you? Are you that much of an ass that you don't understand how the stock market works and would rather rant in a forum about how much you despise FB rather than keeping your mouth shut?

[still1]

Dotcom bubble 2.0 burst imminent?

+1 FB market cap is not valued based on physical assets but no of clicks and users.

If the bubble burst it could cause serious loss.

[neufuse Veteran]

I don't get this...why do you all want a company to fail? What is in it for you? Are you that much of an ass that you don't understand how the stock market works and would rather rant in a forum about how much you despise FB rather than keeping your mouth shut?

A good number of us are laughing inside at the people who thought they would get rich quick with facebook stock because it was so hyped and overvalued

[Shaun N.]

I'm not suprised, Here is an example of why I'm not suprised.

Facebook, Inc. (Facebook) is engaged in building products to create utility for users, developers, and advertisers. People use Facebook to stay connected with their friends and family, to discover what is going on in the world around them, and to share and express what matters to them to the people they care about. Developers can use the Facebook Platform to build applications and Websites that integrate with Facebook to reach its global network of users and to build personalized and social products. Advertisers can engage with more than 900 million monthly active users (MAUs) on Facebook or subsets of its users based on information they have chosen to share with the Company, such as their age, location, gender, or interests. It offers advertisers a combination of reach, relevance, social context and engagement.

Google Inc. (Google) is a global technology company focused on improving the ways people connect with information. The Company generates revenue primarily by delivering online advertising. As of December 31, 2011, the Company?s business was focused on areas, such as search, advertising, operating systems and platforms, and enterprise. Businesses use its AdWords program to promote their products and services with targeted advertising. In addition, the third parties that comprise the Google Network use its AdSense program to deliver relevant advertisements that generate revenue. In June 2011, the Company launched Google+, a way to share online. As of January 2012, over 90 million people had joined Google+. In April 2011, the Company acquired PushLife. In September 2011, the Company acquired Zagat.

In the second sentence Google explain how they make money; Facebook just explain what you can do with it. People are aware of Facebook but effectively how they make their money is by selling users and their data. This isn't something that is going to do well on the stock market imo

[OOOOOOOO]

99% of the people here have zero understanding of the stock market. And I suggest those people keep their noses out of it unless they intend on investing or considering investing into stock in the foreseeable future. But even then, stop posting no-news posts before you have researched and understood how things work.

[neufuse Veteran]

+1 FB market cap is not valued based on physical assets but no of clicks and users.

If the bubble burst it could cause serious loss.

I'm sure newscorp would love to buy them to have a "try again" moment :rofl:

[+Frank B. Subscriber²]

I'm sure newscorp would love to buy them to have a "try again" moment :rofl:

That'd work out well I'm sure. I can't wait for a myspace-ified Facebook...

[CentralDogma]

This is to be expected. New stocks take a while to stabilize.

Dotcom bubble 2.0 burst imminent?

Unlike the dotcom companies, Facebook has some valuable assets: it?s sitting one of the biggest treasure-troves of personal data in history. That is immensely valuable.

[+Nik Louch Subscriber²]

99% of the people here have zero understanding of the stock market. And I suggest those people keep their noses out of it unless they intend on investing or considering investing into stock in the foreseeable future. But even then, stop posting no-news posts before you have researched and understood how things work.

This * 1 million.

[Miuku.]

99% of the people here have zero understanding of the stock market.

I have an excellent understanding of the stock market; it's the biggest failure humanity has come up - ever.

The faster the global stock market explodes and vanishes permanently, the better we're off.

[Farstrider]

I have an excellent understanding of the stock market; it's the biggest failure humanity has come up in the last 100 years.

This and a Banking System that takes the average Joe to the cleaners!! Well said!

[simplezz]

I have an excellent understanding of the stock market; it's the biggest failure humanity has come up - ever.

The faster the global stock market explodes and vanishes permanently, the better we're off.

Exactly. It's one giant casino, with a lot of cheaters to boot (insider traders).

[threetonesun]

99% of the people here have zero understanding of the stock market. And I suggest those people keep their noses out of it unless they intend on investing or considering investing into stock in the foreseeable future. But even then, stop posting no-news posts before you have researched and understood how things work.

Thanks for the clarification. :rolleyes:

The banks that invested in the IPO were trying to sell this on hype, and people knew it, hence the drop. Facebook still gets all the money it wanted, all the investors make off like bandits, the only ones losing out here are the bankers who tried to sell this as the next big thing.

[Astra.Xtreme]

I have an excellent understanding of the stock market; it's the biggest failure humanity has come up - ever.

The faster the global stock market explodes and vanishes permanently, the better we're off.

Failure? If you intelligently invest and use basic investing strategies, it's actually really easy to make a lot of money.

I'm up 25% on my investments over the past year by only using the buy low, sell high principle.

There's no reason to hate on the stock market unless you don't know how to play it.

I, for one, would never invest in Facebook since they offer a free service that only makes income from advertisements and mini games. That's cool and all that they have a billion people on it or whatever, but 99+% of those billion people will never spend a dime on it. Unless they can figure out a fresh way to get income, it will fizzle out like Myspace and all the ad money will dry up. I believe they are at the peak right now and only have one direction to go; down.

[Calum Veteran]

A good number of us are laughing inside at the people who thought they would get rich quick with facebook stock because it was so hyped and overvalued

You and others are laughing at innocent people's misfortunes? Yes, decent people do that /s.

[cybertimber2008]

Dotcom bubble 2.0 burst imminent?

Social networking bubble I'd say.