The week before FaceBook went public trading in the markets my friend Christer told me that everyone who he spoke to either was going to buy or thought FaceBook was going to go up in price for days or weeks to come and that it was one of the best companies around. Even a co worker said he was going to plump down ten thousand dollars into the stock and it would not only be his FIRST trade ever in his life but all the money he had.
I told my friend Christer that I thought the stock would go down and be a disaster because everybody was talking about how it was going to go up.
Most IPO’s don’t do so well when they open and that’s because the owners want out or partially out and the mass selling causes the price to go down.
FaceBook won’t be too much of a success as in terms of price movement, their earnings are not that great, maybe one day they will offer dividends.