Facebook fizzles in debut, shares skirt IPO price

The stock opened 11% higher and rose to $45 before rapidly heading south in frenzied trade, touching its initial public offering price of $38. The No. 1 online social network raised as much as $18.4 billion in one of the biggest initial public offerings in U.S. history.

After a delay in the opening print that drove up anxiety levels among traders and onlookers outside the Nasdaq, the company's closely watched stock began trading at $42.05, compared with an IPO price of $38.

To rapturous applause from employees, Facebook Chief Executive Mark Zuckerberg — flanked by Chief Operating Officer Sheryl Sandberg and Nasdaq Chief Executive Robert Greifeld — rang the bell to kick off trading at the company's Silicon Valley headquarters at 6:30 a.m. Pacific time.

The 28-year-old billionaire founder hugged and high-fived Sandberg and other employees in celebration after he pressed the remote button.

The area outside Facebook's offices at 1 Hacker Way was packed with throngs of photographers, more than 12 television trucks, and a TV news helicopter hovering overhead as the excitement reached fever pitch.

"A 15 to 20% pop is in the realm of possibility," said Tim Loughran, a finance professor at the University of Notre Dame, before the start of trade.

"Given they already moved their IPO range up and increased the size, that's bullish to begin with."