Last week, they were going to price the Facebook shares between $34 and $38. They chose the latter. Happiness and excitement for people who had invested and got allocation of shares, disappointment for those whose orders were not filled. The price briefly popped to $42.05 then headed down from there to settle around $38.
That was Friday.
Today, the Facebook shares opened in the morning in Europe with a loss of nearly $4 in Germany, to be mirrored in America in the afternoon.
Marc Zuckerberg, who donated half of his $7 billion a year ago when he had the IPO, looks to be sitting on a lot of paper money, nearly $18 billion.
People do admire Marc Zuckerberg, and he must know his calculations. If he thought the shares were worth $38, then they must be. I don't hold any, so I am just giving my objective view. Those who bought them should hold on. Alternately, Facebook and their stockbrokers should consider issuing a scrip, and issue a $4 share for each $38 share bought, bringing the price to $34.
I am not yet on Facebook. But I believe they will be able to develop additional revenue streams as the world economy improves. I rate Facebook a long term hold. Everyone hopes it will become like Apple. And those hopes are not unfounded.