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Facebook should take solace in Amazon

May 21, 2012: 12:53 PM ET

Facebook isn't the first Internet giant to "break" its IPO price.

FORTUNE -- In all the hubbub over Facebook (FB) shares falling below their $38 IPO price, venture capitalist Bill Gurley reminds us that such a "break" does not necessarily mean that the stock is a long-term dud. From a tweet late Friday:

Like Facebook, Amazon's (AMZN) underwriters had raised the offering range prior to IPO, ultimately pricing at $18 per share. It then "broke" on its fourth day of trading, closing down at $17.12 per share. The following day was even worse, closing at $16.75 per share. In fact, Amazon shares closed below their offering price for 5 of its first 13 days of trading.

And, to Gurley's point, it closed below the closing price on its first day of trading ($20.75) for two months.

But none of that doomed Amazon stock to a lifetime of mediocrity. As of last check, the company's stock was trading at around $219. So take comfort Facebook fans, not all is (necessarily) lost...

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Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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