Comment IPO prices (Score 2) 191
> Some critics do say that Alibaba's share price will plummet from its current value of $93.60 in the same way that Facebook's and Twitter's plummeted
The vast majority of IPOs are lower in price 6 months after the issue date. Usually what happens is that company owners have some restrictions on when they can start selling stock - and those are typically 6 months or so. So on the day of initial sale supply is very constrained. Later a lot more shares flood onto the market.
For example Facebook went from $38 to $19.
Purchasing IPOs on day of issuance is a sucker move.