Tech Stocks: Nasdaq Embarrassed by Facebook IPO Hiccups
Tech stocks IPO auctions will undergo a few necessary changes after a delay caused Facebook shares to begin trading 30 minutes after the scheduled 11am start time. CEO Robert Greifeld believes that the delay didn’t lead to what many believe was a disappointing debut for the social networking company, though he still feels “humbly embarrassed” by the entire ordeal.
Facebook stock closed at $38.23, which is only 23 cents above where it began. Although the price jumped a bit during the day on Friday, the IPO ultimately couldn’t live up to the hype. However, some analysts believe that the shares were priced just right, which is why their value didn’t see any significant increases over the course of the business day.
Regarding the snafu, Greifeld stated, “It would lead a reasonable person to conclude that it didn’t have an impact on the stock price. It was quite successful, but clearly we’re not happy with our performance.” Over all, the situation may have affected nearly 30 million orders.
As a result, Nasdaq board members gathered on Saturday to discuss potential changes to its IPO auction process. This might be a smart move, as they have been under fire from critics and investors who claim that one of the biggest debuts in history was effectively bungled by the delay. Some have stated that they couldn’t confirm their bids until much later in the day.
The Securities and Exchange Commission is rumored to be investigating the matter.