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Facebook IPO

Facebook IPO

So...the big question today.....should we buy Facebook stock?  I have no idea...so we looked into it and here is what you need to know:

Facebook is going public today . . . they'll release shares of the company around 11:00 A.M. Eastern.   

 

1.)  Facebook is valued at $104 BILLION . . . that's the biggest valuation ever for an American company making its Initial Public Offering - what does that mean?  I have no idea.

2.)  The stock will be $38 . . . but not for you.  - Ha!!!  They got you on this!

 The final price for the stock in the IPO is $38 a share.  But virtually no individual investors will be able to get their hands on the stock at $38.  Only big firms and preferred investors will get that price.

Now.... if you want Facebook stock, you CAN get it.  After the IPO tomorrow when the shares start trading, you can buy it like stock in any other company.  But you can expect the initial wave and massive hype to drive the price up....so plan on spending some $$

3.)  Rumor is.....It's probably a bad investment for you.  With popular companies like Facebook, the share prices SKYROCKET.  Virtually every investment expert will advise that you should wait until the hype dies down to buy a few shares.

 

4.)  Lots of people are going to get Rich quickly.  The offering will create 1,000 brand new millionaires overnight.  And MARK ZUCKERBERG will be worth $19 billion.  But if the stock price surges, he might end up being worth TWICE that:  $40 BILLION. - Really? 

 

P.S.......That would make him the second richest American, behind Bill Gates at $59 billion . . . and just ahead of Warren Buffett, at $39 billion. 

Check these sites for more info.  Save your money and buy a beer and a new pair of boots!

(WSJ / Fox)

 

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