Facebook's initial public offering jumped 18 percent from its $38 share price on Thursday, but then fell back to its original price and hovered there, causing many investors and analysts to question buying the stock.
On Friday, Facebook shares opened at $42, but dropped to $40 at this writing. Most of the stock volatility came from first-come buyers trying to sell as the shares as they gained momentum, according to the Los Angeles Times.
“It’s a total disaster because the stock is trading right at the IPO price,” Francis Gaskins, editor of IPOdesktop.com in Marina del Rey told the Times. “They didn’t want that in a million years. A traditional IPO is up 10 percent or 15 percent.”
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It's a far cry from the rapturous high-fiving going on at Facebook headquarters in Menlo Park as chief executive Mark Zuckerberg rang the bell to start trading Friday, but gaming the stock market has never been easy. Facebook still made $16 billion on the IPO, even at the $38 price, and some say that Facebook stock could easily rise 30 percent in trading, according to Reuters.