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Facebook stock ends flat after chaotic trading day

updated 06:04 pm EDT, Fri May 18, 2012

Record IPO started high before settling

Facebook's record-setting IPO brought significant attention, however the company's stock price (NASDAQ:FB) ended up just $0.27 above the $38 offering price as the trading day came to a close. Shares started off the day trading at $42.05, 11 percent higher than the offering, however the price quickly fluctuated at lower levels before settling later in the afternoon.

The valuation may have fallen below the offering level if underwriters had not intervened to buttress the price, unnamed sources have told The Wall Street Journal (sub. required). Traders are said to have complained about a lack of communication surrounding orders, and the initial trades were stalled by a half hour for unknown reasons.

Aside from breaking a record for total valuation, the stock also surpassed any previous IPO in terms of first-day trading volume. More than 100 million shares changed hands in the first minutes, before topping out at 458 million by the end of the day.

Interestingly enough, the Facebook IPO had a significant effect on Zynga's stock price. The game developer, which receives the majority of its income through web-based games on the social network, witnessed its valuation collapse by 13 percent before trading was automatically halted for the day.



By Electronista Staff
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