Are You Buying Facebook Stock?

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Are You Buying Facebook Stock?

Postby olywaguy » Thu May 17, 2012 3:54 pm

Facebook just set its IPO price at $ 38.00/share which means it will be higher when it trades tomorrow.

Are you buying any facebook stock?



Facebook prices its stock at $38 a share for IPO
By Walter Hamilton
Los Angeles Times

May 17, 2012, 1:21 p.m.

Facebook Inc. priced its shares in its initial public stock offering at $38 late Thursday, setting the stage for its historic market debut Friday.

The IPO values Facebook at $104 billion, the largest-ever for a newly public company. The $18.4 billion that Facebook is expected to raise in the IPO itself would be the second-largest in U.S. history, trailing only the $19.65 billion of Visa Inc. in 2008.

The Facebook pricing comes at a jittery moment for the stock market, which suffered a deep drop Thursday in a continuation of the weakness that has gripped share prices this month.

The Dow Jones industrial average sank 156.06 points, or 1.2%, to 12,442.49. It has fallen 6.3% from its recent peak on May 1. The technology-laden Nasdaq composite, on which Facebook will begin trading Friday, slumped 60.35 points, or 2.1%, to 2,813.69.

Facebook's debut has dominated Silicon Valley and Wall Street in recent weeks, as the company and the financial markets geared up for the most anticipated IPO since Google Inc. in 2004.

The frenzy has been all the more intense given that Facebook was launched only eight years ago in Mark Zuckerberg's college dorm room. The company earned $1 billion last year, up 65% from the prior year. Revenue climbed 88% to $3.7 billion and is projected to rise 65% to $6.1 billion this year, according to research firm EMarketer Inc.

"There's never been a company that's gone from inception to IPO with this kind of valuation," said Francis Gaskins, editor of IPOdesktop.com in Marina del Rey. "It’s a rocket ship that's taken off."

The offering would raise $16 billion initially, and ultimately up to $18.4 billion as the Wall Street investment banks handling the deal distribute additional "over-allotment" shares, as is common in sought-after IPOs.

But even as the excitement has built, so has fear that individual investors rushing into the stock could be setting themselves up for a fall.

Facebook announced Wednesday that Goldman Sachs Group Inc. and other prominent insiders have significantly raised the number of shares they're unloading in the IPO, a sign that the professional investors in the best position to handicap Facebook's investment merits are taking the opportunity to lighten their holdings. Their selling pushed up the size of the IPO 25%.



Carlos

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Re: Are You Buying Facebook Stock?

Postby nimby » Fri May 18, 2012 2:14 pm

Nope. The value will drop. Facebook is just a fad and will pass. :lol:
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Re: Are You Buying Facebook Stock?

Postby Guinness Fan » Mon May 21, 2012 10:43 am

I'd have to agree with Nimby...No thanks...bought stock in a "sure thing" a couple times...hence I'm still working.
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Re: Are You Buying Facebook Stock?

Postby nimby » Wed May 23, 2012 12:32 pm

I inherited a bunch of Apple IPO stock a while back. I wonder how they did ? :lol:
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Re: Are You Buying Facebook Stock?

Postby Earl Butz » Thu May 24, 2012 6:07 am

That timeline thing is so stupid. They should fire the guy who thought that one up.

It's a fad. Anyone buying this stock is a grade A sucker! :lol:
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Re: Are You Buying Facebook Stock?

Postby olywaguy » Thu May 24, 2012 9:18 pm

nimby wrote:I inherited a bunch of Apple IPO stock a while back. I wonder how they did ? :lol:


Have you looked into how much they are worth now?
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Re: Are You Buying Facebook Stock?

Postby Guinness Fan » Fri May 25, 2012 5:42 pm

Was just looking at the price of Facebook stocks...Closed at $31.91 at the start of a 3 day weekend... Loads of hype... I've had better offers on buying the Broklyn Bridge.
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Re: Are You Buying Facebook Stock?

Postby nimby » Fri May 25, 2012 6:05 pm

olywaguy wrote:
nimby wrote:I inherited a bunch of Apple IPO stock a while back. I wonder how they did ? :lol:


Have you looked into how much they are worth now?

I was just kidding. Those stocks are worth tons!!
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Re: Are You Buying Facebook Stock?

Postby Guinness Fan » Sat Jun 02, 2012 3:46 pm

Just checked the closing price of FB shares as of Friday; $27.72... I'll be keeping my money under my mattress thank you...
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