Home > Popular Culture > Who Wants In On The Facebook IPO?

Who Wants In On The Facebook IPO?

November 30, 2011 Leave a comment Go to comments

Facebook has been rumored to be going public for years now.  The time when that becomes a reality may finally be upon us.

Since it was developed back in 2004, Facebook has always remained a privately held company (with Mark Zuckerberg owning the about 24% of the company easily making him the biggest shareholder).  But if recent rumors are to be believed, that’s all about to change.  Facebook is anticipating taking the company public in a deal that could value the company as much as $100 billion.  The IPO is expected to hit the market in March or April of 2012.

For regular folks, this news means very little (since it doesn’t affect the product you see on the internet).  For financial experts, the news is huge (since Facebook could be the largest initial public offering ever).  For savvy investors though, it means just one thing.  How do we get in?

The reason why investors want a part of the IPO is that share values have a history of skyrocketing once they go public.  Back at the beginning of the internet boom, the original internet darling Netscape went public at a price of $28.  During the first trading day after its debut it reached as high as $75.  That’s a return I’m sure most of us would like to see.

Few IPOs see immediate returns like that and the internet boom is long gone but Facebook could change the landscape.  Demand will likely be unprecedented which could drive the stock price much higher when it goes public.  As far the question of how do you get in, the answer is you likely can’t.  Shares are distributed to big financial firms and brokers and only in very rare cases do individuals get their hands of shares before they go public.  In other words, you’d have to be a real financial big wig (i.e. the type of people that Occupy Wall Street hates) in order to sniff the stock before it goes public.

What say you?  Would you buy Facebook stock once it goes public?  Feel free to comment below.

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  1. November 30, 2011 at 2:20 pm

    I’m highly skeptical of investing in Facebook. That $100 billion mark is based on a lot of unsubstantiated speculation – mainly that the huge vat of information Facebook owns is worth that much. I think it’s a lot of hype that needs a reality check. Are photos of my cat and my “liking” certain things really worth a collective $100 billion? Consider the effects of various privacy laws and options on that price as well.. FB might be worth something, certainly it is, but $100 billion is way too high. Of course the IPO price will jump within a couple days, weeks, maybe even months, but like Netscape, I suspect FB will prove to be a very poor long-term investment. Most tech/internet fads usually are..

    • December 1, 2011 at 1:12 pm

      At it’s core, Facebook is just one big Marketing database and that’s where the value is at. I have a feeling that this one would get bid up on the first day and then begin it’s slow descent back to a more normal valuation.

  2. lovethewayyoulied
    December 2, 2011 at 11:39 pm

    I made $127k when Amazon did the IPO – count me in! Sure it will drop but buy low & sell high is the name of the game. Unfortunately I’m not occupying Wall Street in either capacity and I agree the stock will be near impossible to get hold of 😦
    I’d rant about it but it is what it is…

    • December 3, 2011 at 9:26 pm

      Good for you! I wish I had a success story like that!

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