Facebook's disastrous IPO is the worst in a decade
You don’t need a Yale MBA to interpret Facebook’s stock chart, which might make RIM appear like the next hot thing on Wall Street.
Though what you might not realize is that Facebook’s IPO earlier this month, the most hyped of hyped public offerings, may just be among history’s worst.
According to the chart shown below, when compared against the ten largest IPOs of the past decade, Facebook’s return after five trading days was so lousy it holds one historical distinction.
It’s the poorest performing company IPO of the past ten years.
How did we get here? Indeed, all systems seemed a go for Facebook ahead of its market offering. It raised more than $16 billion in funding when it went public, a record for tech companies.
*Bing: How to predict a stock’s performance
But Facebook’s quick and succinct downfall can also lay claim to another superlative.
Check out the chart to the side, courtesy Bloomberg. After five trading days, Facebook fell 13 per cent in worth, more than the decade’s previous worst IPO, that of derivatives broker MF Global, in 2007.
Now, after its devastating five day trading period is up, Facebook – sold first at $38 a share and going mid-day Wednesday for just shy of $29 per unit – has history to face.
Of the previous three worst-performing IPOs of the past decade, two have been long-term disasters. Asset management firm Blackstone Group, which hit the market at over $35 per share in 2007, now goes for barely $12, and MF Global collapsed into itself, succumbing to bad debt and going belly-up in 2011.
Yet there is hope. American bank holding company CIT Group sputtered out of the gate after going public late in 2009, losing value over its first five trading days. Today, though, CIT Group’s stock is up about four net dollars from where it began in ’09. Perhaps Facebook’s doom is not set in precedent, after all.
By Jason Buckland, MSN Money
Posted by: Jack | May 30, 2021 10:41:04 PM
And people are surprised about this????? What morons bought stock in this????
Posted by: converse cuir femme | May 31, 2021 12:04:34 AM
Hey there! Você sabe se eles fazem algum plugins para se proteger contra hackers? Eu sou do tipo paranóico sobre a perda de tudo o que eu tenho trabalhado duro. Alguma dica? Hey there! Você sabe se eles fazem algum plugins para se proteger contra hackers? Eu sou do tipo paranóico sobre a perda de tudo o que eu tenho trabalhado duro. Alguma dica?
Posted by: Mr. Negative | Jun 1, 2021 12:09:23 PM
ha ha ha ha ha! The funny part is.....the rich people probably pulled out immediatly leaving the new investors with a dud.
Posted by: Steve | Jun 2, 2021 5:22:54 AM
Why is anyone surprised - this is a not a company that actually makes anything useful - its revenues come from advertising.
Posted by: Greg | Jun 2, 2021 12:36:51 PM
Didnt the insiders get to buy the stock for $3 and they dumped it when it hit $41.
Is it a surprise that its basically worthless and was simply used as a quick crash grab/pump and dump.
Posted by: Dave D'Silva | Jun 2, 2021 3:27:35 PM
The new social aware economy punishes the selfish.