WARNING: Facebook shares could fall below the initial public offering price of RM114, financial magazine Barron's announced. - Reuters
NEW YORK: Shares in social media company Facebook Inc could fall below the initial public offering price of US$38 (RM114), America's premier financial magazine Barron's announced.
Facebook saw its shares rise a scant 0.6% to US$38.23 (RM114.69) on Friday in the first day of trading.
The stock stayed above the US$38 IPO price, supported in the market by the deal's underwriters. But Barron's wrote in its May 21 edition that the "big question" this week will be whether they continue to do so.
Its shares still look overpriced compared with rivals such as Google Inc, and all the more so given Facebook's challenges in drawing revenue from mobile device users, the weekly wrote.
Facebook's shares also face the prospect of pressure from heavy sales of stock between now and the end of the year if early and inside investors get rid of shares ahead of a potential rise in capital gains taxes, according to Barron's. - Reuters