Facebook Goes Public and Nothing Happens

Posted on May 18, 2012 by

It’s official — Facebook (FB) now trades on the Nasdaq.  Originally priced at $38 per share, after it’s first day of trading, nothing really happened.  Despite vast speculation and rumors surrounding the Silicon Valley IPO, all those rumors amounted to a gain of just 0.61% or a $0.23 total gain.

According to the Wall Street Journal, “Blue chips extended a streak of declines the likes of which hasn’t been seen in almost 40 years, amid concerns about the euro zone and Facebook’s lackluster debut.”  It becomes a game of which came first, the chicken or the egg, when deciding where to put the blame for the lackluster Facebook stock performance.  Are the declines in blue chips dragging Facebook’s stock down, or is Facebook contributing to something already in decline?

More than 30 brokerages and banks were involved in the offering, which saw a nearly 571 million shares change hands on Friday—a record for a stock debut.

Opening at $42 and hovering right around the $40 mark for most of the day, Facebook’s stock ‘lost steam’ during the final hours of trading, ending up pretty much right where it began.

Once the stock opened, trading was robust—100 million shares traded in the first few minutes and more than 200 million shares changed hands in the first hour.

What do you think happened with the Facebook stock today, and what does the future hold for FB?

Justin Gianninoto, Founder, is an experienced digital strategist and creative thinker. He leverages a unique combination of business insight and technical knowledge to advance clients’ strategic goals. Having a deep knowledge of current trends, platforms and technologies, he effectively positions clients' messaging in front of key audiences. He is active in the digital community, having been selected as a member of the inaugural Summer Startup Accelerator program at General Assembly, a global network of campuses focused on technology, design and business. He continues to pursue his passion for innovation and entrepreneurship, staying connected with General Assembly as a teaching assistant, helping students develop technical skills in HTML, CSS, JavaScript, PHP and WordPress. He graduated from Binghamton University’s School of Management Fast-Track MBA program, receiving his Masters in Business Administration with dual concentrations in Marketing and Management Information Systems, and his Bachelor of Arts in English, General Literature and Rhetoric.