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Can someone explain the perception that Facebook's IPO was a disaster? Doesn't the fact that the stock has not risen mean that the offering had the correct pric
by limeade 14y ago
Can someone explain the perception that Facebook's IPO was a disaster? Doesn't the fact that the stock has not risen mean that the offering had the correct price?
- rdl 14y agoOpening at 38 and staying in the high 30s/low 40s would be reasonable. Maximum value for FB, Inc., stable price. Dropping to 26, not so much.
- hncommenter13 14y agoRemember that 26 includes the value of $9B of additional cash on the balance sheet from the IPO. So the valuation of Facebook as a business is actually lower still, once you back out the cash.
- sanxiyn 14y agoI'd agree with you if the price has not risen. In reality, the price has fallen, more than 20%. It may be good for Facebook, but the price was not correct.