Wednesday, 23 May 2012

Hype or Worth?? Which do we buy??

Facebook shares have dropped by as much as 11% on the first day of trading. It did not get much support from its Underwriters, making some investors lose by as much as 25%(yea! wow).


The Shares which started at the price of about $38 dropped by as much as $4.20(Now calculate: if you bought a thousand shares which would cost about $38,000, you would lose $4200...wow) and ended with $34.03 on the Nasdaq which is a decline of about 25% compared to the initial Intra-day high of $45 on Friday

"At the moment it's not living up to the hype," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago, adding that some people may have decided to hang back and buy the stock on the decline.

The drop in Facebook's share price wiped more than $11 billion off of the company's market capitalization -- it became a sufficiently interesting pop culture story that even gossip website TMZ did a brief item Monday morning.

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