Facebook Struggling to Match Hype
As shares of Facebook (NASDAQ: FB) continue to maneuver in the market in its second day of trading, there is much uncertainty about what will come of the biggest technology IPO in history. After initially raising $16 billion in an IPO that sold 421.2 million shares at $38 a piece on May 17, the hype around Facebook seemed just. At close on May 18, the stock remained near its initial price at $38.23. By Monday, however, trading glitches and market uncertainty led to a drop of as much as 13.7 percent to $33 throughout the trading period. With such a dramatic shift in the price of Facebook's shares, there is a lot of speculation as to how much the newly-wed CEO Mark Zuckerberg will lose.
As the largest stakeholder of Facebook, Mark Zuckerberg owns 503.6 million shares of his company, which ranked in at an estimated worth of nearly $19.25 billion by market close on May 18. As Facebook fell in the market earlier today, however, his fortune simultaneously depleted nearly $2.2 billion. Regardless of the unexpected lackluster response from the company, Zuckerberg remains a multi-billionaire. The initial response from Facebook in the market may continue to vary drastically throughout the week as well, either positively or negatively.
In addition to Zuckerberg's loss, many other notable investors faced the same issue. Dustin Moskovitz, Facebook co-founder, owns 133.7 million shares of the company's Class B stock worth $4.5 million, down about $580 million during the day. Eduardo Saverin, another co-founder of the company, owns 53.1 million shares; his stake is down $230 million since Friday's close. The fourth and final co-founder Christopher Hughes, who was already a billionaire when the company began trading on May 18, owns nearly 22 million shares, with a stake worth $746 million. Facebook's COO Sheryl Sandberg, who previously worked for Google, owns 27 million shares, valued at $915 million. She further owns millions of unvested units that are not counted in her net worth calculation.
With one of the most hyped up IPOs in Wall Street history, Facebook shares continue to be traded in the market with uncertainty of its future. Still, the market price in the second day of trading cannot be a sole predictor for the success and growth of the company, Mark Zuckerberg, and other big players in the long run.
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