Registered: Feb 2009
09-05-12 07:34 PM
I will concede that in the eyes of the public FB has a bit of a black eye but time will heal this wound. There is a day in the future when FB will be trading above $38 per share and all will be forgotten. And their initial offering of $38 is low, relative to, say....GOOG's IPO back in the day. I realize they are different businesses with differing fundamentals but on a per share basis 38 bucks isn't high.
Quote from PlinytheTrader:
You are not looking at the entire picture. When most companies go public their goal is not to maximize the share price and screw over anyone left buying their new stock on the open market, but rather somewhere in the middle. Early investors need to get a good price to cash out at, but you still need to keep the IPO low enough so its attractive to the public and it can get a decent pop on the open. A public company should want to have good relations with their investors and as well as a popular stock to own in the eyes of the market. As of now, most investors hate Facebook and would never touch the stock because of how their IPO went, and Facebook will have an extremely difficult time if they ever want to try and raise money in the future.
The notion of it being a good thing that Facebook screwed over the common investor is idiotic. You can't look at an IPO like it's a basic stock trade and say buy low sell hi, unless the company's plan from the beginning was to just pump and dump and that they think the company is a sinking ship. I am not defending facebook, in fact I can't stand the company, but the only reason investors are calling for Zuckerberg to step down is because they are down 50% in the stock and not because he is a bad CEO (jury is still out on that one).