18 million shares traded on the open at $29, and since then 23 million shares have traded between $28.80 and $31.60. Safe to say there's a healthy bid at $29.
Re:Congrats Dropbox
by stanfordkid on Friday March 23, 2018 @06:31PM
(#16663190)
Right. But who were the buyers? Would the same buyers have bought 10 million shares at $29? Or was it thousands of smaller sized investors paying a premium? You need whales to keep the market stable and I don't think the whales would have bought at $29 ... look at the volume over time post IPO, not just day of. The big investors who came in cheap will buy back shares if the price dips... right now they are profiting off the pop.
What is the volume trading at 44% above the opening price?
When you put $700mm of securities on the market you need to price them low enough so that investors hold.