Facebook’s Initial Public Offering Disaster
While it brought billions into Facebook’s coffers, one could hardly call the first day of trading a success. They opened at $38/share and ended up the day at $38.27 (a gain of less than 1%).
The only reason why their stock didn’t dip below the opening price was because they were being propped up by bankers who poured in millions every time the stock threatened to go below $38/share. In fact, the stock price was a flat $38/share a mere 30 seconds before the closing bell before the bankers once again jumped in to help save “Face”. (See “How Facebook’s Bankers Saved an IPO, Kept Shares Above $38” for more information.)
They say that people vote with their pocket books. Based on first day of trading, Facebook is ready to be voted out of office. Is this indicative of social media sites, in general or are people getting tired of Facebook?
My daughter said something quite profound when I told her about what happened. She said, “Dad, it’s just a web site. People get tired of it and they go elsewhere.” Wow, so Facebook may be subject to the same fate suffered by mega-giant portals like AOL, Yahoo, and Netscape? Maybe that’s why sites like Pinterest are trending upwards while Facebook is trending down.
Is it possible that people are getting tired of Facebook not adding anything more to their life than just a time-suck?