Last Friday, after Facebook stock started trading at $42,
most observers immediately pronounced the IPO a flop, BusinessInsider opines. Why you ask? Because the IPO had been priced at $38,
which meant that the IPO "pop" was only about 10% above the IPO
price.
Facebook stockholders who had bought the IPO the night
before had instantly made 10% overnight--a spectacular return. String together
a few months of daily returns like that, and you would quickly be one of the
most successful investors in history.
But some Facebook speculators had expected to make much more
free money overnight--perhaps as much as speculators in LinkedIn and other hot
IPOs had made. So they felt disappointed and ripped off…
And the media, who
have been carefully trained by Wall Street and short-term speculators to view
IPOs with big pops as "successful" and IPOs with small or no pops as
"flops" immediately dissed Facebook as a flop
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