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Facebook Enters the Market at $38 a Share and Rising
The introduction of Facebook (FB) to the stock market was not too shabby. It seems the online community website has become one of the greatest IPOs to ever hit the market, with only Visa having done better at its debut. Facebook stocks are not priced at $38 per share, which is expected to rise quickly today, earning as much as $18.4 billion for Mark Zuckerberg, Facebook founder, and for his team. It could be that he will be 30 times over a billionaire in a matter of days.
Facebook is valued at $104 billion, making it the 23rd largest U.S. company, outdoing Amazon.com and Cisco Systems, and this despite that Facebook is 909th in terms of annual sales.
The #38 stocks will be available to large institutional investors, but harder for private investors to get their hands on — at least at that price. Knight Capital Group had a client eager to pay as much as $4,000 per share!
“The market is going to trade off of Facebook today,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “I don’t want to say it’ll give us a relief rally, but it might give us a temporary books, even if the market is still weak.
Despite Europe’s debt crisis, and the overall weakness of the market, Facebook is making a good standing for itself.Facebook Enters the Market at $38 a Share and Rising by Daniel June