Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

5/20/2012 (4 years ago)

Catholic Online (www.catholic.org)

Flood of sellers keeps the price close to the IPO.

Facebook founder Mark Zuckerberg rang the Nasdaq opening bell from company headquarters in Menlo Park, CA today, only to see the exchange run into immediate trouble. While the stock surged at the opening bell, sellers flooded the market and kept the price flat.

Zuckerberg may not be happy that the stock stayed flat, but his company still made $16 billion today.

Zuckerberg may not be happy that the stock stayed flat, but his company still made $16 billion today.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

5/20/2012 (4 years ago)

Published in Business & Economics

Keywords: Facebook, internet, IPO, Google, Nasdaq


NEW YORK, NY (Catholic Online) - The flurry of reports critical of Facebook's fundamentals has shied some traders away. Traditionally, initial public offerings (IPO) rise as enthusiastic investors go on a buying spree, but today many private stockholders decided to cash out keeping the price around $40. The stock was initially offered at $38.

Making matters worse, investors had to contend with a nearly three-hour wait for the stock to open because of the tremendous volume of trades coming in. The Nasdaq diligently worked its way through the flood of orders and by mid-day trades were running smoothly. 

Despite the flat first day of trading, Facebook still raised $16 billion which is the third largest IPO in US history. It is also the largest IPO ever for a tech company. 

While US stock indexes were up prior to the offering, they have not remained up. Currently, the Nasdaq is down by .62 percent. 

It is easy to imagine why Facebook has had a flat day despite the hype. First, financial data suggests that Facebook does not have the revenue stream to justify its asking price. And while the company is worth billions, it makes very little money off its users. And more importantly, advertisers are taking a second, hard look at Facebook to see if it's worth their money. Earlier this week GM, one of the nation's largest advertisers, said they would stop paying for ads on Facebook, which has also hurt the offering. 

Meanwhile, the market is open to speculators and short-term investments. Many traders purchased the stock only to turn around and flip it for a fast profit. At the same time this was happening, private shareholders also cashed in their stock, suggesting that few insiders believe the price of the stock will remain as high as it is today. 

The end result is a number of people will be losers, at least in the days to come, if the share price enters a prolonged decline. However, with Facebook adding $16 billion to its coffers, it is likely the company will find something lucrative to do with that money. 

Many have suggested that Facebook's next move will be a direct attack - with a search engine to rival Google. 

 

---


Pope Francis: end world hunger through 'Prayer and Action'


Copyright 2016 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for May 2016
Universal:
Respect for Women: That in every country of the world, women may be honored and respected and that their essential contribution to society may be highly esteemed.
Evangelization: Holy Rosary: That families, communities, and groups may pray the Holy Rosary for evangelization and peace.



Comments


More Business & Economics

The world of news is changing, Buzzfeed struggles to keep up Watch

Image of Buzzfeed is struggling, can they cope with the shift in media culture?

By Marshall Connolly (CALIFORNIA NETWORK)

There's growing concern that Buzzfeed doesn't have a very bright future, at least as far as news is concerned. The firm has missed its projected revenues, and it may look to the news for the place to cut. LOS ANGELES, CA (California Network) - It's hard to get news ... continue reading


Two hundred French police raid Google over unpaid taxes as it's revealed firm may owe nearly $2 BILLION! Watch

Image of Police have raided the Google headquarters in Paris, seeking evidence of tax evasion.

By Marshall Connolly (CALIFORNIA NETWORK)

Your favorite brands may be in trouble for tax evasion. Over a hundred police officers and another hundred support personnel have raided Google's headquarters in France as part of an investigation into the company's taxes. Google is one of many brands that may owe ... continue reading


Censorship in America is alive and well. You'll be surprised to see who you can thank! Watch

Image of Obama and Zuckerberg work closely. It's not clear on what.

By David Drudge (CALIFORNIA NETWORK)

Freedom of the press may be the most important fundamental right in a free society. This is why censorship, particularly on social networks such as Facebook, is particularly onerous. LOS ANGELES, CA (California Network) - Freedom of the press is enshrined in the First ... continue reading


Facebook censor scandal - What is Zuckerberg up to? Watch

Image of Facebook censorship scandal prompts Zuckerberg to move (Pinterest).

By Kenya Sinclair (CALIFORNIA NETWORK)

Mark Zuckerberg is set to hold a meeting on Wednesday with Glenn Beck and Dana Perino to talk Facebook's censorship scandal. LOS ANGELES, CA (Catholic Online) - Recently a Gizmodo report accused Facebook of suppressing conservative news in the "trending" section.The ... continue reading


YES, bosses should let their employees power nap. So why don't they? Watch

Image of Studies show a short nap at work and increase productivity, alertness, memory, and cognition.

By Marshall Connolly (CALIFORNIA NETWORK)

There's something to be said for the afternoon siesta, after all. Or at least a power nap, according to one sleep expert from the University of Adelaide. Research shows that a ten-to-fifteen-minute nap in the afternoon improves performance. LOS ANGELES, CA (California ... continue reading


191 THOUSAND mining jobs lost since September '14 Watch

Image of With less coal, the US will need to turn to other countries (Pinterest).

By Kenya Sinclair (CALIFORNIA NETWORK)

Coal provides a cheap and efficient source of power - and the United States has lost 191,000 miners to provide this commodity. LOS ANGELES, CA (Catholic Online) - According to the <a href=http://www.bls.gov/news.release/pdf/empsit.pdf>Bureau of Labor ... continue reading


Obama brags in face of economic failure Watch

Image of The Obama administration claims the economy is thriving - but what is REALLY going on (TPNN)?

By Kenya Sinclair (CALIFORNIA NETWORK)

We all know "that guy." You know the one - the guy who is obsessed with conspiracy theories and who swears the government is out to get us. Well, according to newly released economic data, "that guy" might be (partially) right. LOS ANGELES, CA (Catholic Online) - U.S. ... continue reading


Yes, there's definitely something wrong with millennials, and here's what it is! Watch

Image of As far as millennials are concerned, the American dream is just that -- you have to be asleep to believe it.

By Marshall Connolly (CALIFORNIA NETWORK)

Across the country, the news is shocking. Over half of the millennials think socialism might be a good thing. Most of them believe the American dream is a myth, and public perception is that something is wrong with them. Why do they just want "free stuff?" LOS ANGELES, ... continue reading


Billionaire Soros warns China is near economic collapse Watch

Image of China's economy may be heading for trouble.

By Marshall Connolly (CALIFORNIA NETWORK)

Billionaire George Soros is sounding the alarm, China is about to go down and the rest of the world could follow. According to Soros, there is a major resemblance between China now and the United States in 2007-2008 just before the U.S. economy entered the Great ... continue reading


IRS issues dire warning before Panama Papers crackdown begins Watch

Image of The Panama Papers detail the tax evasion schemes of thousands of wealthy people around the world.

By Marshall Connolly (CALIFORNIA NETWORK)

The IRS has issued a warning to the rich who have been hiding money offshore - come clean now, before we catch you ourselves. The warning follows the leak of over 11 million pages of documents that detail the private, often hidden financial moves of wealthy people ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

  • Woman diagnosed with 'nightmare bacteria' in US
  • Daily Reading for Wednesday, June 1st, 2016 HD Video
  • Advent Prayer HD Video
  • WARNING: Exorcist claims demon is targeting families
  • Daily Readings for Sunday, May 29, 2016
  • St. Maximinus of Trier: Saint of the Day for Sunday, May 29, 2016
  • Your Daily Inspirational Meme: He will never leave you

Daily Readings

Reading 1, Jude 1:17, 20-25
17 But remember, my dear friends, what the apostles of our Lord Jesus ... Read More

Psalm, Psalms 63:2, 3-4, 5-6
2 Thus I have gazed on you in the sanctuary, seeing your power and your ... Read More

Gospel, Mark 11:27-33
27 They came to Jerusalem again, and as Jesus was walking in the Temple, ... Read More

Saint of the Day

Saint of the Day for May 28th, 2016 Image

Bl. Margaret Pole
May 28: Martyr of England. She was born Margaret ... Read More