Nasdaq Muddies Facebook’s IPO


It was supposed to be Facebook's day to shine, as the social network made its entrance as a publicly traded company. By the afternoon of May 18, Reuters was referring to Facebook's debut on Nasdaq as "surprisingly modest," and the Wall Street Journal was saying it had "plenty of buzz but not much pop." As WSJ reported, the company's shares began the day at $42 and ended the day at around the $38 offering price.

This could be seen as proof that Facebook's stock was "well priced" to begin with—not a bad way to begin its existence as a public company. If there was any real loser, it was Nasdaq OMX Group, which operates the Nasdaq Stock Market and competed with the New York Stock Exchange to list Facebook, according to WSJ. Technical problems delayed the start of trading of Facebook stock by 45 minutes, Reuters reported. That left investors "guessing for more than two hours about whether their buy and sell orders had actually been executed."

Questions about Facebook's viability as an advertising platform aside, Nasdaq's technical glitches may have dampened Facebook's trading debut—its overall effect won't be known for a while. Other rising high tech players were probably watching very closely, and might not be feeling very confident in Nasdaq's ability to handle heavy trading volume. The sooner Nasdaq can offer a thorough explanation for the delays in processing the trading orders, the better.

Follow Steve Goldstein: @SGoldsteinAI




Comments Off

avatar

About Steve Goldstein

Steve Goldstein is editorial director of events for Access Intelligence’s PR News brand, which encompasses premium, how-to content, data and competitive intelligence for public relations professionals; PR News Online; PR News conferences, webinars and awards programs; and PR News guidebooks. Previously at AI Steve was editorial director of min, min ’s b2b and minonline as well as managing editor of CableFAX: The Magazine and CableWorld. Before joining Access Intelligence, he was executive editor of World Screen News, and editor of Film/Tape World, which covered film, television and commercial production in the San Francisco Bay Area.



Deals of the Week

Get $150 Off PR News'Crisis Management Boot Camp

Crisis_Boot_banners_175x135_ep

Join PR News on September 15, 2014, at the historic Yale Club in New York City for an intensive boot camp will put you through the paces of crisis communications to help you avoid, or at least mitigate, the damage that can come to a brand.

Use code “150off” at checkout.

Get $50 off PR News' Media Relations Guidebook

book-mediarelations-180x150

This 8-chapter resource contains practical implications for some of the most innovative developments in media relations, including the technologies, methodologies and mannerisms that determine the ecosystem in which PR pros practice this essential part of their craft.

Use code “50off” at checkout.

Save $100 on a PR News Subscription

Let PR News become your weekly, go-to resource for the latest PR trends, case studies and tip sheets. Topics covered include visual storytelling, social media, measurement, crisis management and media relations.

Use code “SUBDEAL” at checkout.

Comments are closed.