'Facebook Friday' Brings In $16 Billion For Social Media Company
By Oren Liebermann
PHILADELPHIA (CBS) -- You might as well call it "Facebook Friday" with all the buzz the social media site generated with its initial public offering. The IPO was one of the largest in history, bringing in $16 billion for the company that was founded in a Harvard dorm room eight years ago.
"It's a watershed company," said Michael Galantino, Managing Director at Boenning and Scattergood. "It's a once in 10 or 15 year developmental company. The question is, is it a good investment?"
The IPO was delayed until 11:30 a.m., when the sheer volume of trades overloaded Nasdaq computers. Facebook traded 82 million shares in the first thirty seconds. But investors looking for a huge surge from $42 per share were disappointed when the price dropped.
"Once it hit $40, there was a rash of selling thinking, 'Oh my God, I got to get out of this now,' so there was a little bit of panic selling," said Galantino.
Galantino says emotion fueled the early trading, not real analysis of the company. Now, every investor can own a small piece of Facebook, but Galantino urges patience.
"Wait to see what happens on Monday and Tuesday, and then the real buyers will show up, not the emotional guys who are trying to trade this thing."
The hype leading up to the Facebook IPO petered out when it came time to trade shares. It might have been Facebook Friday, but it will be back to work on Monday in Menlo Park, making sure the social network is here to stay.
