Facebook shares tank, early investors 'dislike' this
Comment | Print | Email to a Friend | Font Size: AAFacebook shares went live last week, at $38 per share, but they took a sharp dive today right down to $34.03, and 11-percent drop from the $38 starting price for the record-setting IPO. Friday's issues were blamed on technical difficulties, as traders had failed or delayed transfers.
Monday on the other hand, had analysts confirmed that Facebook and its banking partners, mostly Morgan Stanley, had overvalued the stock. 48 hours before the IPO went live, companies had decided to increase the number of shares sold by close to 25-percent, up to 484 million. A number of large investors are said to have received more shares than they expected.
Was the Facebook IPO launch a quick money grab? Overvalued stock, tonnes of press, too many shares and a very quick drop of 11-percent are all signs to me. It'll be interesting to see how the social network goes over the coming days, weeks, and months.
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