Facebook IPO: Fails to live up to all the Hype

The Facebook(FB) IPO Listed on US Stock exchange NASDAQ on Friday. Facebook's flat performance on its first day of trading raises questions about the stock's prospects. The social media giant's stock rose by mere pennies in its initial public offering. The shares closed at $38.23, barely above the $38 IPO price. Facebook, its founder Mark Zuckerberg on Friday rang the opening bell at the Nasdaq stock exchange. Zuckerberg rang the bell from the headquarters of Facebook in California. At USD 16 billion, the size of Facebook's IPO would be the third-largest for a US company. The largest offering ws that of Visa, that raised$17.9 billion in 2008. 
Even after selling 30 million shares to pay his tax bill, Zuckerberg's remaining 503 million shares are worth more than $19 billion; that makes him richer than Google CEO Larry Page, whose wealth was estimated at $18.7 billion by Forbes this spring. But Jonathan Taplin, a communications professor at the University of Southern California, said Zuckerberg's wealth is not the reason for his appeal. "Zuckerberg is a cultural phenomenon," Taplin said, adding that many of his 20-something students look up to the young CEO. "People are amazed by the utility of what he's created." Facebook's astounding growth -- from its inception in a Harvard dorm room eight years ago to its current base of more than 900 million users around the world -- is changing the way people interact on both a personal and a commercial level. While the company reported $1 billion in profit last year on revenue of $3.7 billion, experts say its business model is still developing and faces many risks.