Max Wolff, senior analyst at Greencrest Capital, compared Facebook’s debut to a “starlet tripping on the red carpet”. He said:
The underwriters are buying the stock. That’s why it’s not falling below the offering price. There was a wall of buying when the stock dipped to the $38 offer price.[…] They started out with a fairly aggressive price range, then jacked it up and threw a lot more shares into the hopper. You either juice the number of shares or the price, you don’t usually do both.