NEW YORK — Rather than igniting a new market boom, Facebook Inc.’s much-touted initial public offering fizzled Friday, leaving investors right where they were before the hubbub — mired in worries over Europe’s economy and political morass.
Shares of the social media company closed up just 23 cents to $38.23 — having risen to as high as $45 in midday trading. That gives the company a market capitalization of $105.63 billion. There were hopes that a rising Facebook would help other new economy companies, but shares of Amazon.com Inc. fell 2.1 percent to $213.85 and eBay Inc. sank 1.7 percent to $38.36.
The S&P Retail Index declined 0.6 percent, or 3.58 points, to 590.78 as the Dow Jones Industrial Average declined 0.6 percent, or 73.11 points, to 12,369.38. European markets also declined, with London’s FTSE 100 leading the way down with a drop of 1.3 percent to 5,267.62
Running countertrend were three companies that weighed in with first-quarter results. Shares of Pacific Sunwear of California Inc. gained 9.3 percent to $1.29 after its losses narrowed; Aéropostale Inc. rose 4.4 percent to $18.49 despite a 34.5 percent profit drop, and Ann Inc. rose 3.2 percent to $26.68 after topping analyst earnings expectations.
For Facebook chief executive officer Mark Zuckerberg, the IPO might well be an “out of the frying pan and into the fire” moment. The intense buildup to the offering is over, but the scrutiny and second guessing that all public companies enjoy is just beginning. A few fashion industry titans weighed in with some advice on how Zuckerberg might handle all the new attention.
“To Mark Zuckerberg: Congratulations, well done!” said Leonard Lauder, chairman emeritus of the Estée Lauder Cos. Inc. “Just remember: When looking at all the other people in your space that nothing stays golden forever. Start thinking about tomorrow today.”
Michael Kors added, “Don’t pay attention to fashion naysayers, Mr. Zuckerberg! I wore black crewnecks, black jackets and jeans before my IPO and I continue to do so after. It’s your talent, vision and performance that people are interested in.”
Donna Karan had a slightly different take: “He doesn’t need our advice — he should advise us. Really, though, there are so many things that need help in this world, and he can help, and help us, make the big changes.”
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews