Andre Yoskowitz
18 May 2012 15:14
Despite hype not seen since Google's IPO in 2004, Facebook's debut in the market has failed to impress investors with shares up just 2 percent as of writing.
Priced initially at $38, giving the company a value of $104 billion, the shares are now trading at $39, leaving the social networking giant with a $107 billion valuation.
Says one market broker: "We have got some unhappy guys out there. They were hoping for Facebook to be considerably better. I bet there are a lot of disappointed people in the market."
The stock jumped as high as $45 today but has quickly returned to earth. Popularity of the shares are certainly not to blame as 450 million have already traded and the NASDAQ is even having issues filling orders due to such huge demand.
Facebook, like other Internet-based companies in the new "social bubble" will trade at a massive premium to its earnings. While companies like Apple trade at just 14 times what they bring in, Facebook will trade at 107 times.
The site has 920 million users.