Facebook Goes Public - Why Facebook's IPO shouldn't excite you

illuminance

Legacy Member
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Facebook Goes Public - Why Facebook's IPO shouldn't excite you


(MoneyWatch) The investing world certainly seems to be working itself into a frenzy over the looming Facebook IPO. But before you jump in thinking you finally have a way to make real money from FarmVille and Words With Friends, you had better know your history.


Many people can point to Google as an example of a tech company making investors rich. The IPO set the share price at $85 a share, with the price now around the $580 mark. However, just consider some other recent IPOs.


LinkedIn saw its share price climb as high as $122 on its first day and then settled at $94.25 on that day, jumping up from its $45 initial price. Remember that most of those gains aren't experienced by individual investors, but by institutions that get the first crack at the stock. Those who jumped in after the first day have likely been disappointed, as the stock currently trades around $72.


Complete Coverage: Facebook Goes Public
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Zillow saw a similar spike during its July IPO of trading as well. The company priced its IPO at $20 per share, with the stock ending its first day at $35.77. The stock currently hovers around $30. Pandora offered its shares at $16 when it went public in June. Now, the stock trades around $13.


Of course, these are recent, isolated examples, and investors shouldn't jump in without understanding how IPOs have performed historically. Let's look at the reality of actual performance of IPOs:

rest:
http://www.cbsnews.com/8301-505123_162-57369940/why-facebooks-ipo-shouldnt-excite-you/

:dunno:
 
Étant donné que Google a eu des résultats incroyable, est-ce que le monde vont se garocher comme des caves sur Facebook?
 
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Canadian investors shut out of Facebook IPO

02/02/2012 12:39:44 PM
CBC News

Canadian Facebook fans are unlikely to share in the excitement of the social media giant's hotly anticipated initial public offering.


That's because only the biggest Canadian players have accounts with the social media company's underwriters, who are responsible for doling out shares to investors.

Investment advisors, who usually receive fewer shares than they want of a stock that's in high demand, then distribute those shares among their clients.

By the time Facebook shares actually hit stock exchanges, the price is expected to at least have doubled from the initial asking price.

Facebook hopes to raise about US$5 billion in its IPO when the company sells a small piece of its business to the public. The offering is expected later this year.

The entire California company could be valued at US$100 billion or even more, depending on the market reaction to its stock sale

http://finance.sympatico.ca/home/co...n_investors_shut_out_of_facebook_ipo/e5bd0e58

:dunno:
 
By on the release date and sell the next day ? It's obviously gonna skyrocket in the first 48 hours.
 
This is all fake wealth, crazy that vast amounts of money is being traded for really which amounts to nothing !
Even product based technology companies like Nortel have died, the day will come that these share holders will loose big time !
 
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The IPO of FB is not available to Canadians.

Precisely. And if you place a buy at the open, the gain will still be priced in, you already missed the boat. There is a way to gain in on the action without owning the fb iPo... But this board is filled with so many ignorant "financial gurus" that I'll keep this tip to myself.
 
precisely. And if you place a buy at the open, the gain will still be priced in, you already missed the boat. There is a way to gain in on the action without owning the fb ipo... but this board is filled with so many ignorant "financial gurus" that i'll keep this tip to myself.

qft! ahahah
 
Precisely. And if you place a buy at the open, the gain will still be priced in, you already missed the boat. There is a way to gain in on the action without owning the fb iPo... But this board is filled with so many ignorant "financial gurus" that I'll keep this tip to myself.

quite fuckin false! ahahah
 
Precisely. And if you place a buy at the open, the gain will still be priced in, you already missed the boat. There is a way to gain in on the action without owning the fb iPo... But this board is filled with so many ignorant "financial gurus" that I'll keep this tip to myself.

with the amount of people that wanna buy the stock but cant get in the IPO the volume on that date will be crazy. you can make some money by buying early and riding the stock for few hours or minutes im sure.
 
with the amount of people that wanna buy the stock but cant get in the IPO the volume on that date will be crazy. you can make some money by buying early and riding the stock for few hours or minutes im sure.

by the time your order is processed the people that are going in on the short term will already have killed your profit margin.
 
by the time your order is processed the people that are going in on the short term will already have killed your profit margin.

precisely. Lets say the ipo price is 20, it will NOT HIT market at 9:30 am the market at 20$. THe gains will already be priced in, so it will hit market lets say at 20 + 20%, which is the price US THE CONSUMERS can purchase it at. the only way to make money off this is to ride it for a few days or weeks (if it does pick up)
 
skyline is right ... you need to buy ******* that will allow you to ''bet'' on the share ;)

In my case I'm watching the employment % in the US in order to time my entry into the big cap US market, facebook IPO is just a bubble created by that 1964 stupid law AND a strategy exit for Marc zucky to get some capital.

And for 99% of the folks here (including myself) Mutual funds are a WAYYYY better option to expose yourself to/on the market
 
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