News / USA

Facebook's Stock Debuts on Wall Street

Facebook Founder and CEO Mark Zuckerberg rings the NASDAQ Stock Market Opening Bell remotely from "Facebook" headquarters in Menlo Park, California, May 18, 2012.
Facebook Founder and CEO Mark Zuckerberg rings the NASDAQ Stock Market Opening Bell remotely from "Facebook" headquarters in Menlo Park, California, May 18, 2012.

After weeks of anticipation, it was finally time Friday for Facebook Inc.'s official debut on Wall Street. After jumping more than 10 percent in the first few minutes of trading, Facebook stock, selling under the FB symbol, closed less than one percent higher.

Despite the lukewarm start, analysts say trading volumes were high. The IPO [initial public offering] was one of the biggest in history.


The year's most hotly anticipated public offering kicked off at 11 a.m, Friday in New York, with founder Mark Zuckerberg ringing the Nasdaq opening bell remotely from Facebook headquarters in Menlo Park, California.

Facebook's Stock Debuts on Wall Streeti
|| 0:00:00
X
Mil Arcega
May 19, 2012 1:03 AM
After weeks of anticipation, it was finally time Friday for Facebook Inc.'s official debut on Wall Street. After jumping more than 10 percent in the first few minutes of trading, Facebook stock, selling under the FB symbol, closed less than one percent higher. Despite the lukewarm start, analysts say trading volumes were high. Mil Arcega reports the IPO [initial public offering] was one of the biggest in history.

Despite the hype and the celebratory hugs, the stock's performance on day one proved underwhelming. That came as no surprise to investment strategist Michael Gayad.


"We've actually seen a few of that type of behavior in some other tech IPOs this year where the initial excitement was high, there was a lot of buying and then it just gradually fell off," said Gayad.


After opening at $38 a share, Facebook stock closed just 23 cents higher. That's a big wake up call for a company that is now worth more than a $100 billion, said media analyst Nick Thomas.


* Check out our Facebook Calculator

"Everyone loves Facebook because it's free. The big challenge for Facebook is once it has shareholders, it's going to have to try to generate serious revenue," said Thomas.

Among the doubters was automaker General Motors, which pulled its ads from Facebook, saying it didn't think the social network could deliver results.


Some analysts had been warning that Facebook was overvalued.


Jeff Corbin at KCSA Communications told VOA he had no plans to invest in Facebook.

"How do we put a value on it? Right now, it's all advertising. If the advertising industry determines that Facebook ads don't really help, then we're going, they're going to see a decrease in their revenue," he said.


But Facebook is not without its believers. Jonah Peretti, the founder of Buzzfeed.com, has encouraging words.


"It's a phenomenal company when you look at the level of engagement and there is nothing to compare to it, nothing has ever had that level of engagement before. And so I think they have a very bright future and that people haven't fully understood the impact they're going to have on the Internet and on business and on media," said Peretti.


Despite a disappointing first day, the world's largest social network - with an estimated 900 million user accounts worldwide - managed to raise more than $18 billion, making it the largest technology IPO in U.S. history.

You May Like

China Investigates Former Powerful Security Chief

Former security chief and member of Politburo Standing Committee, Zhou Yongkang, under investigation for suspected 'serious disciplinary violation' More

India, US Look to Reset Ties During Kerry Visit

This week's talks will be first high level interaction between two countries since Prime Minister Narendra Modi took charge More

Video Young African Leadership Program Renamed to Honor Mandela

YALI program, launched by President Obama in 2010, aims to build skills in business, entrepreneurship, public management and civic leadership More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid