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Entries in Stock Price (5)

Monday
Aug202012

Apple (AAPL) Becomes History‚Äôs Most Valuable Company

Kevork Djansezian/Getty Images(NEW YORK) -- Apple Inc. (Nasdaq: AAPL) set a new record as the most valuable company in stock-market history, after its stock hit a new intra-day high today.  Its stock passed the $664 mark on Monday, up over 2.4 percent.

The market value of Apple, which is its stock price multiplied by the number of outstanding shares, reached $622 billion in midday trading, beating out Microsoft (MSFT), the previous record-holder, which peaked on Dec. 30, 1999.

Analysts attributed increasing buzz around Apple’s next iPhone, expected to be released this fall, and a possible iPad mini, to the jump in the stock price.

The new record does not take inflation into account, though, so Microsoft was worth considerably more in its prime.  

Apple has been the world’s most valuable company since the end of 2011.

Copyright 2012 ABC News Radio

Thursday
Aug022012

Facebook Stock Dips Below $20

Justin Sullivan/Getty Images(NEW YORK) -- Facebook shares hit a new low Thursday, dipping under $20 for a short time.

The company’s latest stock woes come on a day when bad news piled up for the social network.

Top Facebook executives Katie Mitic and Ethan Beard said they’re quitting for other pursuits, the second and third top managers to leave since the May 17 IPO.  The exits came after news that the company’s prospects dimmed in the second quarter as sales and user expansion slowed.

This morning the Wall Street Journal reported that institutional investors including Fidelity are dumping their shares. Some 21 Fidelity funds sold more than 1.9 million public Facebook shares in June, the newspaper reported.

If that wasn’t enough bad news, Facebook noted in a regulatory filing that more than 83 million Facebook accounts are duplicates or fakes.  That’s about 4.8 percent of its total accounts.

But it gets worse. Blogger Erik Larson set the investor community abuzz when he estimated that 90 percent of the Facebook advertising clicks he receives were from spambots.

Facebook shares dropped as much as 4.7 percent to a record low, the fifth straight day of declines. They traded at $20 this afternoon, 47 percent below their IPO price of $38.

Copyright 2012 ABC News Radio

Tuesday
May292012

Facebook Shares Hit New Low

EMMANUEL DUNAND/AFP/GettyImages(NEW YORK) -- Facebook shares fell 7 percent to below $30 on Tuesday, the lowest since the initial offering, as options trading on the stock began.

The social network has been the worst-performing large IPO in at least a decade, falling more than 20 percent. The shares fell $2.49 to $29.43 in Nasdaq trading at 12:51 p.m. Tuesday. They opened at $38 in their May 18 debut and briefly touched $45.

Investors are sour on Facebook’s prospects, the options trading indicates. An option gives an investor the right to buy or sell a share of stock sometime in the future for a price that’s set today. The volume of “put” options exceeded “call” options by 1.3-to-1, according to data compiled by Bloomberg.

The most widely-sold option bets that the price of Facebook shares will fall to $25 by mid-July.

Facebook is the subject of lawsuits and at least one government probe over its IPO and the news that some big investors were tipped off by analysts that the company’s results would be disappointing.

Copyright 2012 ABC News Radio

Friday
May182012

Facebook IPO: Nasdaq 'FB' Stock Opens Trading

EMMANUEL DUNAND/AFP/GettyImages(NEW YORK) -- After some technical hiccups, trading in Facebook's blockbuster IPO officially opened to an eager public Friday at about $42.05 a share, but the price dropped below $40, lower than what many analysts expected.

Shares were virtually unchanged from the offer price at $38 at 11:51 a.m. eastern time, after rising 11 percent at the open.

Jim Krapfel, IPO analyst with investment firm, Morningstar, said he was surprised to see Facebook only up a few percentage points given the amount of pent up retail demand for its shares.

"Clearly concerns regarding the company's valuation, increased insider selling, and GM news are weighing on the stock. Weakness in the stock market over the last several days is also likely playing a significant role," he said.

Visit Yahoo Finance for real-time trading of Facebook shares.

General Motors said this week it was pulling about $10 million worth of advertising from Facebook.

But that didn't stop Mark Zuckerberg, CEO and founder of Facebook, and COO Sheryl Sandberg from celebrating IPO day. The two executives gathered with a throng of cheering employees at the company headquarters in Menlo Park, Calif., to ring the Nasdaq's opening bell at 9:30 a.m. eastern time ahead of the social media network's long-awaited IPO.

Trading of the company's shares, designated with the ticker symbol, "FB," was scheduled to begin around 10:45 a.m. eastern time, but began almost an hour later because Facebook's underwriter, Morgan Stanley, was reportedly having trouble changing orders.

With a large monitor and stage set up outdoors in "Hacker Square," instead of visiting Nasdaq's New York exchange, hundreds of employees gathered in the early hours of the morning in California. Many of them had participated in Facebook's 31st "hackathon," a company tradition described as an overnight sleepover that encourages employees to work on anything but their normal work duties.

Nasdaq's CEO, Bob Greifeld, stood beaming next to Zuckerberg, 28, sans necktie, donning a t-shirt and clapping along with the other employees.

It was a long-awaited moment for the eight-year-old company that started in the Harvard University dormitory, Kirkland House.

Not to abandon Wall Street completely, Facebook CFO David Ebersman reportedly was at the Nasdaq in New York City during the opening bell. Instead of scrolling the usual stock prices of the day, Nasdaq's digital billboard at its market center in Times Square this morning read, "Nasdaq Welcomes Facebook."

On Thursday night, Facebook priced its initial public offering at $38 a share, raising $16 billion and valuing the company at $104 billion. The company said it made $3.7 billion in revenue in 2011.

The company is offering 421.2 million shares of common A-class stock, which includes 180 million new shares sold by the company and 241.2 million shares sold by existing shareholders, such as early employees.

The biggest IPO for a U.S. technology firm has gotten the attention of everyone from high school students to Wall Street professionals, many of whom are likely among the 900 million monthly users of the social media site.

Out of four recent technology IPOs -- those of LinkedIn, Zynga, Pandora and Groupon -- only LinkedIn has recently traded above its IPO price. LinkedIn's IPO price last May was $45 a share. Shares of LinkedIn were trading down around 0.36 percent on Friday morning at $104.

While the IPO will make a number of billionaires out of early Facebook employees and investors, Facebook's lead underwriter, the investment bank Morgan Stanley, will also come out a winner by the fees it will earn. The investment bank determined who got shares of the company before shares are sold to the larger public on Friday.

Krapfel said the media hype and investor buildup are to be expected, despite Facebook's investment risks.

"It's the most hotly anticipated IPO of all time," Krapfel said. "Most of the U.S. population that uses the internet uses Facebook so there's no surprise there would be a lot of interest in the IPO. Certainly with this much hype, there's a lot of demand from investors."

A trend of other high growth tech offerings show that "the more the stock goes up in the first day, the more it declines in the ensuing weeks and months," he said.

Morningstar has valued the company at $32 a share but Krapfel said he expects the stock to trade into $50 and above.

Copyright 2012 ABC News Radio

Tuesday
Oct252011

Netflix Stock Plunges after 800,000 Members Quit

Justin Sullivan/Getty Images(NEW YORK) -- If you were angry enough at Netflix to cancel your membership over major changes to the movie delivery service, you weren't alone: there were 810,000 people just like you, the company announced Tuesday.

The news sent the one-time Wall Street darling into another tailspin Tuesday as the stock -- already down 60 percent since the company announced a price hike in July -- dropped another 35 percent after the opening bell. Netflix stock briefly hit $300 per share on July 13; Tuesday it dropped below $75.

All of the red arrows for the company known for its red envelopes stemmed from a doubly disastrous decision. Netflix had a successful movies-by-mail service, but decided it would be left behind if it kept sending DVDs to people instead of streaming them online. When the company tried to jack up its prices -- and spin off its mail service to a new business called Qwikster -- customers revolted.

"They're making a transition from a 'momentum stock,' where you can do no wrong," said Vasily Karasyov, an analyst at Susquehanna Financial. "When the momentum's gone, you see the complete annihilation of the share value. That's why they call it a momentum stock."

Netflix actually beat Wall Street estimates when it reported profits Monday, but it warned that it would lose money in 2012. It needs to clean up the mess in the U.S., and it's trying to expand its service in the U.K.

"We moved too quickly," CEO Reed Hastings told ABC News last month. "We didn't give it enough thought. We didn't give it enough explanation, enough integration, and you know, that's legitimately caused our customers to be angry."

Karasyov is among several analysts who have downgraded Netflix stock to "negative" from "neutral."

"There is no quick fix," he said. "It there were a quick fix, don't you think they would have done it by now?"

Copyright 2011 ABC News Radio







ABC News Radio