Facebook IPO Stock Market Performance

Facebook’s recent IPO demonstrated how difficult it may be to determine when to purchase a newly released company’s stock.  Companies like e-Bay, Yahoo!, and Linkedin had impressive launches. Facebook has not shown the same first-day stock market gain.

The first-day results may not give a good indication of the strength of the stock.  The company may see an increase in stock price due to Facebook’s advertising and marketing appeal.  The company recently acquired Tagtile.  Due to this acquisition, Facebook’s success may be improved through e-commerce.

Even if Facebook opened without a pop, Mark Zuckerberg became very wealthy with the initial offering.  Although it may surprise some that Zuckerberg does not own the most shares of Facebook,  Zuckerberg is now one of a select group of famous entrepreneurs who made it big before turning 35.

While some may be eager to cash in on the success of Facebook, check out:  Some things to take into consideration before buying shares of an IPO.

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