No wonder, Zuckerberg just used oportonity to gain more money. After previous IPOs of social media related companies such as LinkedIn and Zynga which prices climbed up rapidly after market-opening, overpriced Facebook wasn't too confidential.
This kind of stock like Apple, Google and now Facebook are so called cool stock - every of retail investor must have it. And retail investor usualy doesn't know how to calculate price of stock. Upcoming IPO of Twitter will be probably much more difficult than previous.
Another side of this business is an institution that is in the role of guarantor. In this case was Morgan Stanley - American multinacional financial services corporation (not only investment banking). The Facebooks' IPO was a great example what this company is doing for living. Take money from dummy "investors".
But on another side it is problem of people what to do with their savings and one of the simpliest way is to get rid of the money - usualy unconsciously. They trust their stock market broker or in this case multinational financial services corporation with Name and after expected decline they will sue them. But getting rid of the money is what people usualy do in their lifes. We are working like slaves in our jobs and than we spend all salary for buying useless stuff like home theatres or in advanced case Lamborghinies for feeling a little freedom in our lives but who profit from this are only those big multinational financial services corporation and they're making of us more slaves that we are willing to admit.
And Facebook? There are two ways what company will do with money "gained" in IPO - free cashflow to firm and free cashflow to equity. They have now 4 bilions USD. What with them? Buy 4 Instagrams? Buy back or dividend are too far and right now too unreachable. But who knows.
