Weekly Wrap: What happened to Facebook's stock?

A reporter waits for the share price of Facebook to start trading at the Nasdaq stock market moments before it went public on May 18, 2012 in New York. The social network site began trading after 11:30 a.m. with shares jumping 13 percent to $43 before quickly falling. On Thursday, Facebook priced 421 million shares at $38 each.

Marketplace's New York bureau chief Heidi Moore and CNBC's John Carney discuss the first day of trading for the highly anticipated Facebook stock.

Heidi Moore: It was a tremendous disappointment. They should have done much better and the company was really haughty towards investors. I think karmically, that came back to bite it.

John Carney: I don't think it was as bad as Heidi says. I think that we've gotten used to these sort of explosive first days for some of these hot IPOs -- I don't think that's healthy for the market. You shouldn't buy into an IPO hoping to double your money; it's not the lottery. A 10 percent or 7 to 15 percent raise is pretty normal.

For more analysis, listen to the full audio above.

About the author

Kai Ryssdal is the host and senior editor of Marketplace, the most widely heard program on business and the economy in the country.


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