On Friday May 18, 2012, People were huddled outside the windows of the Nasdaq stock exchange in New York’s Times Square as the worlds largest social networking company, Facebook, stock opened for trading for the first time. Cell phones and cameras were held high pointed up at the Nasdaq board awaiting a first glance in price change. The morning excitement saw the stock quickly jump 13% to $43. However, a few minutes later the gains quickly fell and shares in the company were barely trading above the first offering price of $38.
The Nasdaq exchange trading is initially set for 11am ET, but it was delayed almost 30 minutes Friday morning due to so many last-minute orders that were clogging the system. Only select investors were sold stock at the IPO price of $38 a share but more that 200 million shares traded within the first hour. Furthermore, as noontime came around investor enthusiasm began to fade but the shares were trading at about $39.90.
As far as private Investors go, it’s been a “Beautiful Day” for Bono. He could very easily be the richest musician on the planet, as he own 2.3 percent of the shares of Facebook. The Irish rock icon went through his investment group, Elevation Partners. In 2009, well before Facebook filed papers to go public, the investment group paid $90 million for the shares. Bono’s share in Facebook could be worth more than $1.5 billion.
The company has already raised $16 billion in the IPO and is projected to raise more to reach a total of $18.4 billion.
Facebook.com was born in 2004 in a dorm room in Harvard University. Today the social network that was created by Mark Zuckerberg and associates is worth more than $104 billion in the market and has 900 million users. Facebook is worth more than Amazon.com, McDonald’s, and Visa.
Facebook has gone from a simple social networking website to a brand name over the past few years. It is only the beginning in the way the Internet and social networking will pave the future but it also has a lot of things to work on. One of the biggest things still to prove is finding ways to increase profit and earnings from the free users it has.
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