Monday, 21 May 2012

Facebook Stock Down By 12% (Morning) On First Trading After IPO

Facebook's first day as a Public company was not so good in terms of trading, it began with a 4.5% down in pre-trading and has gone as low as 12% cut (Morning), standing at the 35-36$ mark after it began at 38$ a share.

The lackluster opening of the public trading of Facebook Shares comes after Facebook’s long-awaited IPO on Friday, posting a morsel of a gain (23-cent gain) over its $38 opening share price.There have been various theories abound to why Facebook’s IPO didn’t take off, one possibility is that glitches and bugs from Nasdaq that delayed trading in the stock for 30 minutes may have stopped the momentum of the stock.It was expected to perform much better than it actually did.

Whatever Facebook does, there will be ramifications on other social networking sites as well, we could clearly see this as the stock rates of Zynga, LinkedIn, Yelp were all down.

We can only wait and see what happens in this unpredictable market.
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Gautham A S

Gautham A S is a personal tech columnist and blogging expert at TechGau.Org, one of the leading Tech, How-To and Blogging Tips blogs in the world..