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Did Facebook have a successful IPO last Friday? Absolutely. Facebook raised over $16 Billion dollars of public money to use to expand its business. Early investors who chose to cash out received an exceptional return on their investment. And that’s really what successful IPO’s are all about. Now, if you happened to be lead underwriter Morgan Stanley, or JP Morgan or Goldman Sachs, the other underwriting banks, Friday was not the best. In order to keep Facebook’s shares trading above the $38 initial price, the underwriters had to move into the market and buy shares. So, while 28 year old, Mark Zuckerberg joined the ranks of multi-billionaires, his bankers had a very bad day at the office – their fees reinvested in Facebook to prop up the stock price. What’s next? I’m not a financial advisor and this is not financial advice, but don’t be surprised to see this stock go down before it goes up.
About Shelly Palmer
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with AI strategy, implementation and governance, as well as technology, media and marketing. Named one of LinkedIn’s Top Voices in Technology, he is a bestselling author, covers tech and business for Fox 5’s Good Day New York, is a regular commentator on CNN, and writes the popular daily business blog Think About This. Follow @shellypalmer or visit shellypalmer.com.