Facebook’s trade debut generated more media attention than profit as it closed at $38.23 – up just 23 cents from its original price.
Facebook head Mark Zuckerberg had opened trade in a video link From California. Technical hiccups had delayed trade, but this didn’t stop it rising to $42 within minutes. A spike that was explained away as debut hype. By close of trade, Facebook’s share price may have suffered from its own celebrity. Chief Trader with Close Brothers Seydler Bank AG, Oliver Roth offers his analysis:
“It’s going to be very difficult for the management to fulfil the expectations of all the investors, simply because Facebook is automatically now so expensive as a stock that the results afterwards have to be more or less, in my point of view, a huge disappointment for the investors. But right now, for the next couple of days, maybe weeks, Facebook will be a hype, the stock price will go up and up.”
Tipped as the most hotly anticipated share of all time. Facebook dominated talk in Times Square. New Yorker Sean Powell seemed underwhelmed by the news, “I think like everything else, over time it’ll teeter around and just be your average stock like a Coca Cola or Colgate, something like that.”
With over 900 million monthly users Facebook has a huge cultural impact. With the explosion in social network use on new mobile devices Facebook hopes to boost advertising revenue, experts are unconvinced of their potential to clicks into cash.