FB Investors In For A Bumpy Ride
By Dock Walls, @dockwalls
On the first full day of trading following the disappointing Initial Public Offering (IPO), Facebook’s troubled stock opened lower than the underwriters’ initial price of $38. Currently, Facebook is trading down 10 percent at a price of $34.60.
On May 17, 2012, Facebook sold more than 420 million shares for $38 each. On May 18, 2012, those with at least $500,000.00 in their portfolio could immediately purchase shares of Facebook. Throughout the day, FB stock hovered around a paltry $39. It finished up 23 cents at $38.23.
Those Facebook employees and investors who chose to hold on to their stock are likely regretting that decision.