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The only winners today are the VCs and investment bankers who bought in and sold out.
Everyone who bought google at the IPO has made money if they sell now.
And if this jump was so easy to predict - why didn't those people buy more?
People can pick on the IPO all they want. Google got more for their company than any other internet IPO in history.
It was a success. People six months ago were predicting 20 Billion dollar market caps.
Nasdaq officials say that two trades were prematurely posted before the start of trading, thus the big 'drop.'
Are all down because of GOOG?
Most likely not. I was quoting them before as people seemed to be bidding these up to ride the wave.
MSFT is too unreleated to matter - and itisn't like google going public should be a suprise to anyone. The market is down overall today - except for google of course :)
Mamma.com had a pretty good gain today.
One more negative news, if any, this baby could easily go down below the IPO price!
Let's say a fair price for a Google share is $150. Had they gone through the traditional methods, they would have pulled in $150 less the traditional 15% discount or $127.50. That means Brin's bravado cost his company several billion dollars in working capital. Hey, great going guys. You must be all smiles.
IPOs don't work like that! The company prices its shares and receives payment at the pricing point, which is determined in advance of the open. Companies don't get to sell at the opening price - all the shares have already been sold before the market in the stock begins.
In other words, Google would (under a conventional IPO process) have perhaps been priced at something like $30-50. The first trade would have been the same as now i.e. $100 and the headlines would have been "Google doubles/trebles on first day" - but Google themselves would only have banked that $30-50 a share.
That's why during the dot-com bubble companies were going up eye-watering amounts like 600% on the first day - their financial advisors were dramatically underestimating interest in the stock, and the companies were leaving $billions on the table.
The way Google did it, they only ultimately left $15 on the table, which is an excellent result.
It will be interesting to see if the price holds when Yahoo and AOL decide to dump their 2.3 million shares.
<added> I personally prefer lots of those little $5 shares that gain a dollar. ;) </added>
Yahoo Inc. (YHOO) and America Online Inc., which were early investors in Google, still plan to sell. Yahoo, now one of Google's biggest rivals, is selling 1,610,758 shares; AOL will unload 743,745, according to the filing. At $90 per share, Yahoo would collect $145 million, while AOL, part of Time Warner Inc. (TWX), would reap $66.9 million.
Also, a nice Google trading day summary:
Brin and Page: The $3.7 Billion (each) Men...