Facebook Stock Up, But Still Below IPO Price - Mark Zuckerberg can smile again. Facebook stock has stopped declining and had gained, though still below the trading price of the prime.
At the close of trading Wednesday, shares rose 3.2% up to U.S. $ 32 per sheet. Although still below the IPO price, at least this reinforcement could dampen investor disappointment.
Its stock is still 15% lower than the price of initial public offering (IPO) in U.S. $ 38 per share, which began trading on the Nasdaq last weekend.
Strengthening of Facebook stock on Wednesday was arguably the first time since the IPO, because the trading only a slight increase. Initial offering of Facebook was facilitated by a consortium of 33 underwriters led by Morgan Stanley, including JPMorgan Chase and Goldman Sachs.
This corporate action is the largest IPO in the history of technology companies, including also the most disappointing. Nasdaq also had to postpone its shares trade up for half an hour because of technical problems.
Some analysts said the share price is set too high. Indeed, Facebook promised to boost the number of users to 900 million, but the company had forgotten its main income is from advertising.
