Facebook Inc. first started about 8 years ago and yesterday they became a public company. Even though the stock was widely predicted to soar on the first day, Wall Street bankers had struggled to prevent Facebook’s stock price from ending with a loss. Facebook ended up closing at $38.23, which is only $0.23 higher than the opening price. My prediction is that despite Facebook’s mediocre opening day, the company’s stock price will soar to prices that are similar to Google as they report their future quarterly reports. Facebook CEO Mark Zuckerberg is very focused.
Facebook’s shares jumped about 11% before dropping again yesterday. The stock was also hit with trading glitches and a 30-minute delay in the opening of trading. When the pop in the stock price did not open, investors were prompted to sell off. This is when Facebook’s underwriters had to come in and buy millions of shares at the $38 price point. Lead underwriter Morgan Stanley was assigned to be Facebook’s “stabilization agent.” Morgan Stanley and other 11 Wall Street banks had to buy around 63 million Facebook shares worth more than $2.3 billion at the offer price. However Facebook’s $105 billion market cap makes them bigger than companies like Hewlett Packard Co. and PepsiCo Inc.
Facebook CEO Mark Zuckerberg rang the opening NASDAQ bell at the from the company headquarters in Menlo Park.
“Going public is an important milestone,” said Zuckerberg. “But here’s the thing. Our mission isn’t to be a public company. Our mission is to make the world more open and connected.”
He ended the speech by saying:
“Stay focused and keep shipping.”