Facebook IPO

It's funny that it's considered an Initial Public Offering since the owning stock means little. Zuckerberg controls 57 percent of voting shares, which means the IPO is a nice way to get easy cash to dole out to the VCs, Zuckerberg, and other employees.

 

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Rise of 10 cents a share after first day. Maybe not everyone is a lemming after all.

 

I doubt Jamie Dimon is in danger of switching from Peter Luger's to White Castle. But JP Morgan's derivative losses are up to $5 billion, the stock has lost $30 billion in market capitalization, and now they are the second-biggest underwriter for this IPO, and doubtless had to sink a good chunk of cash into propping up the price so it didn't end with an opening loss.

 

From what I've seen on the After Hours ticker, plenty of people were getting hosed by their brokers. Most trades ranged from the 38.23 to 38.40 pps but I literally saw hundreds and hundreds of trades being reported at $40 and $42 per share. The ticker was averaging mostly 32.35 and then you'd get 4 or 5 quick trades of $40 or $42 and two seconds later they'd be back at 32.35 and pattern would repeat over and over again every 20 seconds for almost the full four hours of the after hours ticker.

 

Interesting. So, what's the MMQB analysis of the IPO? Is it just that the stock valuation was fairly accurate, or is this a complete disappointment?

I'm not nearly smart enough in this subject area to know (yet ... I think it's the next arena I'm going to start really diving into and learning about), so I'm curious to know what people think of the first day of trading.

 

Ding.

Ding.

And frackin' ding.

 

Not a great second day for the newly Mr. Zuck -- stock down 11 percent to $34.

 

Someone asked me about 6 mos ago to look over a prospectus for a private fund that mentioned having the oppty to get Facebook stock pre-IPO but not guaranteed. Promoter had already been found guilty of securities infractions in Delaware (found via 'Net) yet he was asking min. $100k buy in and lock in for at least 12 mos. Unbelievable that people would agreed to those terms. Friend is now glad he did not buy in.

 

Overvalued. Clap, clap. Clap, clap, clap.

 

Just a bit outside Bob.

Good news is that you can easily get at $34 today.

 

It is my opinion that social media may turn out to be like the airline industry. A ubiquitous product that is used by millions, but where it's hard as hell to make a profit of those customers.