Originally published: May 20, 2012
Last updated: May 20, 2012 - 8:55pm
Once protected by the hype bubble, Facebook is getting a hard lesson in the realities of the public markets.
Despite the massive build-up to its IPO, the market response has been more tepid than expected. “We are seeing the stock hit reality like a brick wall,” said GreenCrest Capital senior managing analyst Anupam Palit. Facebook’s scale and engagement might have pushed its valuation to $100 billion, but, like every other public company it’s not immune to the larger economic trends. Palit said he expected Facebook’s first day to be less dramatic than that of its public tech peers (like LinkedIn, Pandora and Groupon, which all saw a first-day pop of at least 30 percent), but added that today was “definitely more muted” than anticipated. Still, he said that Facebook’s performance was generally positive considering that “the guys who have flown really high on their IPO have tumbled in subsequent weeks.” Also, while first-day retail interest in other tech stocks had been essentially nonexistent, Palit said, retail buyers were much more interested in Facebook.
- Facebook's epic fail
- Did Media Go Overboard Hyping Irene?
- Facebook, Twitter and Groupon: The Next Economy or the Next Tech Bubble?
- Facebook and Yahoo: A Tale of Two Internet Pioneers
- This Tech Bubble Is Different
- 3 Things That Will Change After Facebook's IPO, And 2 Things That Won't
- Facebook’s Prospects May Rest on Trove of Data
- It's Always Sunny in Silicon Valley
- Ed tech teams compete for modest prizes from Gates Foundation, Facebook
- Will Mr. Zuckerberg Have to Go to Washington?
- Internet firms react fast to avert implosion
- The Filter Bubble
- For Buyers of Web Start-Ups, Quest to Corral Young Talent
- Dems Go Virtual to Promote New Agenda
- Are We Headed For Another Tech Bubble?