Although this situation with the underwriters propping up the price makes Facebook's value pretty questionable and will create a negative sentiment, I believe i

Although this situation with the underwriters propping up the price makes Facebook's value pretty questionable and will create a negative sentiment, I believe it's positive for Facebook that the price didn't pop. Facebook already has a pretty steep road to travel to live up to the offering valuation. As a CEO I think I would prefer having a muted, non-volatile stock price than an inflated, volatile one. Inflated prices are good when you're ready to sell but can be a distraction when you're growing. Underwater options and market reactions can destroy employee morale --- look at Yahoo.