Facebook's Zuckerberg rings NASDAQ bell on day of IPO

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In this image provided by Facebook, Facebook founder, Chairman and CEO Mark Zuckerberg, center, rings the opening bell of the Nasdaq stock market, Friday, May 18, 2012, from Facebook headquarters in Menlo Park, Calif. The social media company priced its IPO on Thursday at $38 per share, and beginning Friday regular investors will have a chance to buy shares.
AP Photo/Nasdaq via Facebook, Zef Nikolla

Updated 11:30 a.m. EDT

(CBS News) MENLO PARK, Calif. - Facebook co-founder and CEO Mark Zuckerberg rang the New York-based NASDAQ's opening bell from Facebook's Silicon Valley campus Friday -- the day of Facebook's long-awaited initial public offering.

Each share sold for $38 when trading in the stock started. That would raise $16 billion. The share price jumped more than 10 percent in the first half-hour of trading.

And it would put Facebook's value at $104 billion, which is more than Disney and McDonalds.

At Facebook's headquarters, it was to be a day of riches for many early employees.

Zuckerberg, 28, will become a billionaire 30 times over, and many early employees will become multi-millionaires.

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But to show they are still in touch with their roots as computer hackers, a crowd of Facebook workers spent all night at headquarters on what they call a "hackathon."

Facebook set up a huge stage for a company tradition: an overnight computer engineering session.

The message, perhaps, is that a company valued at more than $100 billion can't rest.

Facebook workers have their work cut out for them, says CNET Executive Editor Paul Sloan. "Their challenge now," he says, "is not to get more users. It's to find ways to make more money off the many users they already have."

Facebook had revenue of just over $1 billion in the first three months of 2012. Eighty percent of its profits come from ads aimed at its more than 900 million users.

What does Facebook know about those 900 million people?

"What does it not know!" Sloan replied with a chuckle.

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It is, says Sloan, "a gold mine. They just haven't figured out how to turn it into a cash machine in the way, for instance, that Google did."

But Friday's stock offering is more than a huge cash machine for Facebook's early investors and employees.

At the Michelin-starred Madera Restaurant in Menlo Park, near Facebook's headquarters, the tables fill up for lunch every day and the parking lot fills up with expensive cars.

The wealthy here aren't shy about spending, says Madera's Michael Casey.

"To the degree," he says, "that IPOs can be a rising tide for many industries, we've certainly benefited from that."

The new Facebook wealthy will join plenty of others with money in Silicon Valley, thanks to the success of companies like Google and Apple.

But it can all raise questions about a tech bubble.

"Facebook is making money," CNET's Sloan points out. "Facebook has a huge audience. It's been around eight years. This is not ... some fly-by-night operation."

Zuckerberg was to ring the stock market's opening bell from the Facebook campus.

Whether it's a good or bad day on the stock market, it will be an historic day for the company.

To see John Blackstone's report, click on the video in the player above.

  • John Blackstone
    John Blackstone

    From his base in San Francisco, CBS News correspondent John Blackstone covers breaking stories throughout the West. That often means he is on the scene of wildfires, earthquakes, floods, hurricanes and rumbling volcanoes. He also reports on the high-tech industry in Silicon Valley and on social and economic trends that frequently begin in the West.