After hitting the market hard, then getting hit hard by the market, Facebook's tumultuous IPO has hit a new low, closing at $28.84 yesterday and losing more after hours to rest at $28.69. Some of the "smart money" made claims last week and before that they were going to wait until Facebook went south of $30 before buying. That time has come. Will they buy?
The answer would probably be yes if it weren't for foolish semi-confirmed reports that Facebook is building a phone. If the rumors turn out to be true, many will run from the risky endeavor which would take the virtual world of social media and add in the rocky world of mobile devices where companies like Dell and HP have failed and where the market seems to be contracting. Even RIM, who specializes in mobile devices, can't seem to get their act together. How can Facebook?
That's the question that will determine whether or not buyers are ready to take the plunge or if they're going to hold out for the stock to go lower. There's also the distinct possibility that the smart money will run for the hills completely with the Facebook phone prospects.
As IPO goes, this one has been pretty bad. It might not be the worst IPO ever as we thought it would be, but it certainly appears to be close to the title in the early days. When will they rebound? Will they?
Disclaimer
This article is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Market data, tax rules, and prices can change after the article date. TECHi and its authors may hold positions in securities or digital assets mentioned. Always conduct your own research and consult a licensed financial, tax, or legal professional before making decisions.
About the Author
JD Rucker is Editor at Soshable, a Social Media Marketing Blog. He is a Christian, a husband, a father, and founder of both Judeo Christian Church and Dealer Authority. He drinks a lot of coffee, usually in the form of a 5-shot espresso over ice.
