Facebook is not “unfriending” the Nasdaq
NEW YORK (AP) — During the week that the bankers behind Facebook’s initial public offering issued their first ratings on the company, its shares fell nearly 6 percent.
The stock ended trading Friday, June 29th at $31.09, down 27 cents for the day. For the week, it lost almost $2, or 5.9 percent, compared with last Friday’s closing price of $33.05.
The 40-day quiet period for analysts who work for the banks that underwrote Facebook Inc.’s IPO ended this week, meaning they finally could issue ratings and opinions on the stock.
In a flood of reports on Wednesday, they mostly rated it “neutral” or “buy.” Morgan Stanley, the lead bank for the IPO, set a target price of $38.
That’s the very same price it initially sold for and has failed to match since.
The Wall Street Journal says Facebook had considered moving its shares off the Nasdaq in the days following its trading debut, but the company now feels that would erode confidence in its shares even further.