Facebook IPO Seen Deepening Investor Distrust Of Stocks

You know what? Good. A stock that explodes after the IPO means it was priced too low, and the company didn't raise a fair amount of capital.<p>Facebook is obviously smart enough to think for the long term. I don't trust the financial machinery to do that.

No it's not. FTA:<p>"The IPO produced the worst five-day return among the largest U.S. deals of the past decade."<p>That's an <i>extremely</i> qualified factoid. Please retitle this post.

That means the IPO was priced right. Investment bankers used to deliberately priced IPO low to let their favorite clients profited with the popup right off the gate. The companies lost lots of money when their IPO priced low.<p>Looks like Facebook avoided the problem and got the right price.

I'm amazed the article didn't mention the lawsuits that are being filed against the lead underwriters Morgan Stanley, Goldman Sachs, JP Morgan etc; according to the claims, some institutional investors got insider info that presumably leaked through the "Chinese wall" that FB was ill-positioned to take advantage of growing mobile ad views and thus would have to lower its earnings guidance for the next quarter.<p>Then again, the SEC and practically all government agencies are revolving doors with big business so I wouldn't be surprised that all they get is a slap on the wrist.

It's been less than a week.

A 16% drop hardly qualifies as the "worst performing IPO of the decade".

I wouldn't touch fb stocks with a 10 ft poll.

The funny thing to me is how everyone swears that they only invest due to fundamentals, they absolutely aren't just gambling their money in the big slot machine and hoping to see three cherries come up instantly and coins pour into the tray.<p>And then when three cherries don't come up on the first spin, man, are they pissed off.

We won't know for some time (at least until a possible twitter IPO) the scale of the damage caused by the Facebook IPO on investors' appetites for social stocks. I'd reserve judgment.

Can we just stop beating this dead horse for once please?

What's funny is FB still had a better week than DELL. Somehow that surprise just isn't worth talking about.