Anyone who went short on day one, betting that the syndicate couldn't hold the bid, won nicely.
Here is the chart:
Facebook broke its offering price on the open with a gap of over a point -- a sign of major weakness -- hitting a low for the day of $33 and closing not much better.
On the whole, a big black eye for the underwriters, the company and the all social media IPOs.
Not only has Facebook soaked up a huge amount of IPO money, it has caused a portion of that money to be lost. So the IPO market is losing ammunition and I believe this will cause it to lose courage as well. If you didn't get your initial public offering out before Facebook hit, you will find that you are running uphill now.
The only sign of hope is that the volume was much lower today so hopefully for the underwriters, the flippers are being cleaned up and the shorts will not be so eager to take new positions.
I would not be following this stock until it shows signs of making a bottom -- something I would not expect for a while -- or unless I had a position.
You can expect the shorts to keep pummeling the media with articles saying Facebook is only worth $20 per share and the longs to be looking for any straw they can to support their stock.
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