(function() { var po = document.createElement("script"); po.type = "text/javascript"; po.async = true; po.src = "https://apis.google.com/js/plusone.js"; var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(po, s); })(); Shelley Palmer gives a nice overview of the Facebook IPO and what is happening. Friday saw the long awaited IPO of Facebook Inc (NASDAQ:FB) and it failed to live up to the hype they got over the past year.  Shares of Facebook Inc (NASDAQ:FB) closed up only 23 cents after hitting $40+ mid-day.  Facebook Inc […]" /> Kurtz Real Estate Group » Blog Archive » Facebook IPO Update

Home » Real Estate News » Currently Reading:

Facebook IPO Update

May 22, 2012 Real Estate News No Comments
post thumbnail

Shelley Palmer gives a nice overview of the Facebook IPO and what is happening.

Friday saw the long awaited IPO of Facebook Inc (NASDAQ:FB) and it failed to live up to the hype they got over the past year.  Shares of Facebook Inc (NASDAQ:FB) closed up only 23 cents after hitting $40+ mid-day.  Facebook Inc (NASDAQ:FB) did set a record for trading volume but the huge share float combined with huge retail investor presence, made institutional investors pass on the stock.

During this IPO, there were certainly winners and losers.  The winners were Mark Zuckerberg, Goldman Sachs Group, Inc. (NYSE:GS) and the brokerage firms.  The losers were NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) and Morgan Stanley (NYSE:MS), and retail investors.

Lets start with Mark  Zuckerberg first.  This past week has been huge for the Facebook founder.  First, he celebrated his birthday, Facebook’s IPO and his marriage to long time girlfriend, Priscilla Chan.  Zuckerberg has received some criticism over his wedding, which was the day after the IPO, because of the “lack of sensitivity” for shareholders.  The bottom line here is that the Facebook CEO is not only a lot more rich but he is married now also. We hope he signed a pre-nup agreement.

The brokers made a lot of money on the trading. According to TD Ameritrade Holding Corp. (AMTD), Facebook Inc (NASDAQ:FB) made up 22% of all the brokerage’s trading volume on Friday. This means a lot of money for the firms from traders buying and selling of the stock.

Goldman Sachs is rarely a loser, it seems, when it comes to IPOs and other funding ventures.  According to the SF Gate, Goldman made $1.09 billion from selling its stake on the IPO date.  Goldman was an underwriter for the deal which made them stand to make a lot of money.  If the investment bank sells its remaining 4.3 million shares, they could be looking at an additional $1 billion in profits.

Moving on to the “loser” side of the spectrum, the Nasdaq embarrassed itself on Friday, after the IPO was delayed due to mechanical failure.  Unfortunately, the system was overloaded with orders of Facebook and it simply just stopped confirming orders.  This certainly played a role in the IPO’s failure as a number of high-priced orders never went through by the time the closing bell sounded.  The SEC has said they will be looking into more details of the software failure that occurred last Friday.

Retail investors were also losers. Even though the IPO price was $38 the stock opened at approximately (different numbers) $43 a share. Any retail investor who bought Facebook shares on the open at the time of this writing have a 23% loss in less than a full day of trading, not a great annualized return.

Last but not least, Morgan Stanley.  The main underwriter of the deal certainly got the worst of the deal as the investment bank bought sizeable amounts of Facebook towards the end of the day to keep the price from falling through the IPO price of $38.  Luckily, the $38 level held and Morgan Stanley successfully completed its job.  Unfortunately, Facebook is down 11% today which gives Morgan Stanley a hefty loss on the trades.

The bottom line, Facebook’s IPO was a failure and continues to get worse today as the price was in full free fall.  Zuckerberg and Goldman made it out on top but Nasdaq and Morgan Stanley especially have some new problems that need to be dealt with fast.

Facebook Twitter Email Pinterest Digg Stumbleupon

Comment on this Article:







My Contact Information

Gary Kurtz
949.565.5201
gkurtz@homgroup.com
BRE# 01710776

Kathy Kurtz
714.394.2676
kathyk213@aol.com
BRE# 01876966

HOM Sotheby's International Realty
1200 Newport Center Drive, # 100
Newport Beach, CA 92660

949.565.5201 (cell)
949.478.7769 (office)
650.796.5507 (Silicon Valley #)

Contact me now with any questions:
gkurtz@homgroup.com

Kurtz Real Estate Group




Follow Me On Twitter

Live, up to the minute tweets during broker tour and other live real estate events, plus news and information.


Searching For A Home?


Search All Listings Here

If you are in the market for a home anywhere in Southern or Northern California? Search our MLS Listings to find your dream home.

Then when you are ready to get more information or schedule a tour of your favorite homes, call me and I'll take care of the rest.

Real Estate Insider Video Show

Alain Pinel Realtors Silicon Valley

April 3, 2013

Alain Pinel Realtors Silicon Valley

We at Alain Pinel Realtors have been releasing high quality videos that give buyers a feel for different areas. Today, we released the Silicon Valley video. Take a look. If you are looking for luxury real estate all along the Peninsula and Silicon Valley in areas such as Los Altos, Saratoga, Monte Sereno, Palo Alto, […]

Palo Alto Real Estate Update

February 3, 2012

Palo Alto Real Estate Update

The numbers are strong for real estate in Palo Alto with this month’s sales figures.  Watch the video to see all key sales numbers for the month of January 2012 compared to January 2011.

Menlo Park Monthly Real Estate Sales Figures for October 2011

November 5, 2011

Menlo Park Monthly Real Estate Sales Figures for October 2011

The average sales price of a home in Menlo Park fell 7.8% for the month of October 2011 compared to October 2010.  The total number of sales for both periods were similar, which is good news, but the home prices were a little lower than expected.  The surprise number is that the average price per […]

Timely News

Pools and Waterfalls of the Wealthy

August 6, 2015

Pools and Waterfalls of the Wealthy

We all love to see how the wealthy spend their money.  Jets, fast cars, homes….but how about their pools and waterfalls?  This is even more fun to see as there is a big water shortage here in California, so it’s an even bigger status symbol than before as only the very wealthy can afford the […]

Off Market Listing in Pelican Hill – $12,500, 000

August 1, 2015

Off Market Listing in Pelican Hill – $12,500, 000

There is a new off market listing in Pelican Hill area of Newport Beach that is sure to get your mouth watering.  The home is 9200 square feet on a 22k sf lot with incredible views.  We have more photos and information, but the asking price is $12,500,000.  If you are a buyer and interested […]

Southern California vs Silicon Valley in battle for tech supremacy

July 27, 2015

Southern California vs Silicon Valley in battle for tech supremacy

Having worked in Silcon Valley for years and also being a native Southern Californian has me with my heart in two places.  So, when I see comparisons of SoCal vs Norcal and especially in the tech world, I get excited to see more movement down to Southern California as tech/startup world is very exciting. This […]

Prices Still Rising In Orange County

June 30, 2015

Prices Still Rising In Orange County

Prices continue to show gains for the areas of Newport Beach, Corona Del Mar, Newport Coast and Laguna Beach.  Most areas have surpassed their peak prices that occurred in around 2007.  Will prices continue to rise?  It seems the high end luxury homes have slowed a bit but the inventory still is at low levels. […]

Why So Many Chinese Buyers in Palo Alto and Along the Peninsula?

May 22, 2014

Why So Many Chinese Buyers in Palo Alto and Along the Peninsula?

Everybody reads about the large supply of Chinese buyers who are buying homes here along the Peninsula.  There are many agents, one prominent one who we all know and now has a plane to fly his Chinese buyers around, who target the Chinese buyers very heavily.  Buy, why are there so many Chinese buyers and […]