Seems like everything was on hold yesterday except for the Facebook stock price gyrations. In the end it eked out a measly 23 cents over its IPO price of $38 and that with some grand assistance from its underwriters and backers.
That assistance was so obvious, specially towards the end of the trading session. You could tell the stock really wanted to break below $38, but every time it touched that price it was nudged back up. Looked totally artificial and trigger-directed. Obviously the bankers didn't want to look foolish by having the stock close below IPO's price. That would have meant that they didn't do their homework. At least this way they can claim they priced it in the Goldilocks zone, not too hot, not too cold, but just right.
Well, the founder and a bunch of other people that matter became uber-wealthy yesterday and there's still a chance that the stock may get its footing and actually climb. Sure, it's an expensive stock with the P/E ratio currently at 122, but Amazon's P/E is an astounding 175. Going by Amazon's measure, Facebook should at least be worth $55 per share.