Sizzle or Steak?
Perhaps proving me wrong, Google shot up today from its IPO price of $85 to close at $100 a share (plus a few cents). I had questioned whether Google would justify its high IPO price, and before it went public yesterday, events seemed to bear me out. The floor for the IPO price dropped to $85 from $108, and Google shareholders sharply reduced the number of shares they were making public. One explicit and one implicit sign that the stock wouldn't debut as well as originally thought.
Is today's action an indication of better things to come? Some say no, and I tend to agree. I think today's ramp up is nothing more than market psychology, an emotional reaction driving people to get a piece of the pie before it becomes too expensive. My hunch is that the price will drop and probably soon.