On it’s second day of trading, Facebook’s stock (FB) fell well below it’s initial offer ($38 per share). It’s not looking good for the social media giant’s leap from site where we dick around to respectable public company.
Although the tech world had lauded Facebook’s IPO as a hot ticket item, investor sentiment had been lukewarm at best last Friday – Facebook’s first day on the Nasdaq. After a mixed day of trading, Facebook closed their first day of trading at $38.23 per share; mainly due to a last ditch effort by their underwriters at Morgan Stanley to preserve the IPO price.
Today, Wall Street’s sentiment remains pessimistic about Facebook and at the time of this writing, the price is down over 11%. For what it’s worth, day trading is a job by itself and is not the type of investment that’s beneficial for the average person; in other words, if you’ve invested in FB and you’re reading this from your 9-to-5 and thinking you’ve just put your family in the poor house, stop now and go get a cookie. Seriously, the Market is fickle and it’s much too early to call this a bubble bursting, but in the words of the wise Wu Tang Clan: “Diversify yo’ bonds.”
Source : Bloomberg