From what I've seen, it was hugely overvalued. Maybe $25-$50 billion, with a share price of $28-$32.
Last minute change to $38+ was suicide.
Last minute change to $38+ was suicide.
Remember market cap = total shares * price. :)
More realistically, Facebook should have sold less shares, which would have kept the price at that target. But I guess it couldn't sell less: they had a bucketload of people who wanted to sell, and all the biggest potential buyers had already bought... Lesson learned: don't get talked into secondary market abuse...
Sure I get the supply and demand thing you're trying to articulate, but the reality is that I as an investor am concerned that FB is overvalued at 100B marketcap, whether the shares are sold at $1 or $10000.