Facebook rings NASDAQ opening bell; stock closes at $38.23
After all the hype, the social networking giant Facebook has finally opened its shares for initial public offering (IPO). According to latest report, Facebook’s first day as a public company has ended where it began.
It is reportedly said that Facebook’s stock has closed at $38.23, up 23 cents, while started its initial offering at $38 per share.
Facebook’s closing price is indicating that social networking giant with over 900 million users is worth about $105 billion. To the reader’s surprise, this value is more than Amazon.com, McDonalds and storied Silicon Valley icons Hewlett-Packard and Cisco.
It is worth noticing that Facebook has earned net income of $205 million in the first three months of 2012, on revenue of $1.06 billion. As far as 2011 is concerned, it earned $1 billion, up from $606 million in previous year.
However, as people were expecting that facebook’s initial public offering is going to be its most anticipated in years, the single-digit increase was somewhat disappointing.
According to some market watchers, the small jump in price is an indicator that Facebook and the investment banks (which are responsible for arranging the initial public offering) have priced the stock in an appropriate pattern.
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