WOMP WOMP: Facebook's IPO Pop Fizzles

Facebook Sheryl Sandberg COOAm I reading that right?

Photo: Crossroads Foundation Photos

Facebook’s stock was priced at $38 per share, and when it finally started trading it popped to just $45.Now it’s settled around $40, $39, $38…

Considering some of us (ahem, me) figured the thing could go as high as $70 per share before coming back to Earth, Facebook’s mini-pop demonstrates a rather stunning lack of enthusiasm by the public markets.

To be sure, Facebook sellers had a LOT of stock to move, and this surely dampened the price, but still.

The silver lining is actually a very bright one. Considering its decelerating advertising revenues, Facebook’s $104 billion valuation is already hard to stomach. That Facebook hasn’t gone nuts means that investors – consumer and institutional – are actually behaving rather responsibly.

The other important to point to make is that a small pop means Facebook CFO David Ebersman did a very good job making sure Facebook was able to meet investor demand almost perfectly in his pricing negotiations.

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