It's official: Facebook's IPO to be priced at $38 a share

Facebook will begin trading shares publicly on Friday morning as expected and CNBC.com reports that the price of its stock will be $38 a share. That's on the high end of Facebook's previous expectations for the stock price. A few days ago, the company indicated in a filing with the US Securities and Exchange Commission that the stock price would be between $34 to $38 per share.

The initial public offering (IPO) of shares is expected to raise as much as $16 billion for Facebook. The stock price will also value the company at about $104 billion when it starts trading on the NASDAQ stock market. Facebook CEO Mark Zuckerberg, who owns the largest amount of stock of the company, will, on paper anyway, be worth around $17 billion when trading on Facebook begins.

Zuckerberg and other Facebook executives will ring the NASDAQ opening bell from Facebook's headquarters in Menlo Park, California at 9:30 am ET on Friday. The actual trading of Facebook's stock will start at 11 am ET.

Before that happens, Facebook employees will engage in one of the company's periodic "hackathon" events. VentureBeat.com reports that the 31st Facebook hackathon will start at 10 pm ET tonight and go all the way until the company starts trading its stocks tomorrow. Hackathons allow Facebook employees to create code and software projects on the fly that could later be used in Facebook's services.

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Astra.Xtreme said,

Nope, Initial Public Offering (IPO) really is open to the public. Anybody is free to invest.


That's not how IPOs go. I mean, yes, TECHNICALLY anybody is free to invest, but only if you know someone who has the stock. The stock gets out by underwriters. There is a finite amount of that stock. So, no, not everyone is going to get it -- just the people who have the best connections. Unless you're a major client at a brokerage firm, you ain't getting in on the Facebook stock.

Setnom said,
How can I buy them? Is there a mininum limit? Are they available to everyone, no matter the country?

I'd recommend if you don't know the process then Facebook shares are probably not the best idea for a first investment.

I would be avoiding this like a plague... They have no revenue stream other than ads, which don't seem to be doing that well. Another case of an internet company trying to sell air.

GreyWolf said,
I would be avoiding this like a plague... They have no revenue stream other than ads, which don't seem to be doing that well. Another case of an internet company trying to sell air.

you haven't been following FB lately then. They get money from game credits, and they're trialing a new feature where you can pay to have your posts highlighted on your friends walls.

SirEvan said,

you haven't been following FB lately then. They get money from game credits, and they're trialing a new feature where you can pay to have your posts highlighted on your friends walls.

In reality: it's a totally useless site that doesn't provide anything that was not already available.
It will fail... bookmark it. They will not survive any more than any past bubbles have. I have exactly zero FB friends that are interested in the site anymore.

GreyWolf said,

In reality: it's a totally useless site that doesn't provide anything that was not already available.
It will fail... bookmark it. They will not survive any more than any past bubbles have. I have exactly zero FB friends that are interested in the site anymore.


Plus they're pushing the mobile side of things, and I don't see ANY ads on their mobile apps... I suppose it sort of figures Zynga went for the public offering back in December as their stuff involves money directly.
Edit: I also can't help thinking there's a privacy bubble around Facebook and social networking in general. When (or I guess if) that ever bursts, **** will get real for many companies.

GreyWolf said,
I would be avoiding this like a plague... They have no revenue stream other than ads, which don't seem to be doing that well. Another case of an internet company trying to sell air.

I could not agree more!!
Thanks God for some sanity.................

Fritzly said,

I could not agree more!!
Thanks God for some sanity.................

Me too, I can imagine in 10 years students will be using this as a textbook case study of how financial bubbles form.

There would be stock available if the market thinks that $34-38 a share is too expensive, but in that case it wouldn't be worth buying.

Ladies and gentlemen, I give you your second .com bubble. Seriously, the people that think Facebook is worth a 10th of a trillion dollars are completely bat**** insane.

just placed a limit order for 7 shares (~300$) for S&G's If it drops it drops, but at least I can say I've been able to buy an IPO

SirEvan said,
just placed a limit order for 7 shares (~300$) for S&G's If it drops it drops, but at least I can say I've been able to buy an IPO

Exciting!! That means that even if the stock goes up $10 you've made....wait for it... a whole $70!!!!!!!!! That's retirement written all over it!!

Of course they have a revenue stream, those persons who spend hours each day eyeballing the site. I had block FB through the host file this week just to get rid of some of them. Lets face it, Facebook is an institution that is here to stay.

Mr. Dee said,
Of course they have a revenue stream, those persons who spend hours each day eyeballing the site. I had block FB through the host file this week just to get rid of some of them. Lets face it, Facebook is an institution that is here to stay.
They said the same thing about Myspace during it's peak time in 2007-2008

In the case of Amaratrade you can only buy Facebook stock the day of the IPO if you have $250,000 invested with them. In the case of Place like Morgan Stanley I think it was more like $500,000. But that was just for the 1st day. After that anyone can buy.

warwagon said,
In the case of Amaratrade you can only buy Facebook stock the day of the IPO if you have $250,000 invested with them. In the case of Place like Morgan Stanley I think it was more like $500,000. But that was just for the 1st day. After that anyone can buy.

Exactly. And the price will have gone up a decent amount since people who bought the stock earlier in the day are then flipping it (or people who already owned stock through previous investments, like Microsoft, are selling it for a higher price).

I wouldn't put a dime in this company... everyone remember AOL? Yeah this is exactly what will happen to Face book in a few years when people get tired of being nosey.

sava700 said,
I wouldn't put a dime in this company... everyone remember AOL? Yeah this is exactly what will happen to Face book in a few years when people get tired of being nosey.

Wasn't myspace sold recently for a few million? I think a lot of "noobs" are going to get destroyed by real traders.

it will drop like a rock within the first couple weeks.. By september youll be lucky to get $15 per... Not to mention, with the IPO that public, give it time, Im sure by January, some clown will own enough stock for a hostile takeover.... here is your chance Apple or Microsoft... have at it...

Xerino said,
it will drop like a rock within the first couple weeks.. By september youll be lucky to get $15 per... Not to mention, with the IPO that public, give it time, Im sure by January, some clown will own enough stock for a hostile takeover.... here is your chance Apple or Microsoft... have at it...

Erm, I don't think even Apple have enough funds to buy enough of a stake for a takeover.

Astra.Xtreme said,

Erm, I don't think even Apple have enough funds to buy enough of a stake for a takeover.

All it takes is 5%

I would gladly invest in FB but sadly its quite a challenge to do so from Canada
I wouldnt want a long term investment though.

The biggets problem i see is that most of the initial buyers will be big instituitions like pension companies who invest for eps and long term. When the stock drops, which most predict it will then the pension fund pot loses money. Remember these guys aren`t using their money and if something which has been hyped to death comes along they are obliged to invest!
Sure some will make a quick buck, but probably not that many...

It's a cash grab by the investors and anyone who has been with the company, and that's all. If you want to buy some stock to pay for someone's retirement to a tropical island, go right ahead.

apparently people do not remember the dot com craze of the late 90s before that bubble burst... this will happen to facebook

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