So... Who is going to get in on Facebook's IPO?

by LMC
16 replies
Just curious to see how many investors we have here?

Who's going to get in on this craze?
Maybe day trade it on opening day? Or hold out for a few months.

Personally, I think the IPO will eventually (a couple years) kill Facebook.
#facebook #ipo
  • Profile picture of the author Thomas Smale
    I think they are grossly overvalued so am intending to short the stock. Will probably give it a few months to settle down a bit as I'd imagine there will be a lot of people jumping on the bandwagon early and buying.
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    • Profile picture of the author hmartin90
      Originally Posted by Thomas Smale View Post

      I think they are grossly overvalued so am intending to short the stock. Will probably give it a few months to settle down a bit as I'd imagine there will be a lot of people jumping on the bandwagon early and buying.
      I think this is a good strategy I have seen quite a few IPO's when I was following the stock market regularly, and they always seem to go down when they first come on. That doesn't mean that they will stay down, so it is def a short term trade.
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      • Profile picture of the author Jon Patrick
        I read an interesting tip the other day regarding this. Someone wrote that you want to wait until just before the first quarterly report after the IPO, and then short the stock right before the report comes out. The reasoning being that the stock will climb upward based on hype for the first little while after the IPO, but will sink downward once investors see the first quarterly report and realize just how overvalued the company is.

        Seems to make sense to me. But I don't think I'll be betting money on it.
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    • Profile picture of the author birddog200
      Originally Posted by Thomas Smale View Post

      I think they are grossly overvalued so am intending to short the stock. Will probably give it a few months to settle down a bit as I'd imagine there will be a lot of people jumping on the bandwagon early and buying.
      I agree, I think it will be very overvalued at first.
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  • Profile picture of the author LMC
    Thomas, yea similar strategy here, I can't believe the $100BN valuation that has been discussed.

    It will be interesting to watch indeed
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  • Profile picture of the author Thomas Smale
    It has MySpace written all over it IMO...
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  • Profile picture of the author TopKat22
    We have talked about it. I am waiting for more information. We shall see.

    I doubt that pumping more money into Facebook will in any way "kill it" though.
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  • Profile picture of the author Awesomo
    am a conservative person, usually go for those companies with physical goods and I don't buy on hype...

    but that's just me...
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  • Profile picture of the author shaynjordan
    Nope, I think FB is going to be huge for the foreseeable future, but I think that people are going to like it less once when this happens. I do not see it making FB better.
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  • Profile picture of the author Eric Lancheres
    I think they are super overvalued as well. People are still hoping for another "Google" so there might be a bunch of people jumping on it...

    Only to realize that... woops! It's worth a ton, but not THAT much.
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  • Profile picture of the author J Bold
    I know nothing about stocks so nope. When is the IPO, though?
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  • Profile picture of the author Jon Patrick
    Supposedly it's coming up soon, but I haven't heard an official date as of yet.
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  • Profile picture of the author GMD
    Banned
    Originally Posted by LMC View Post

    Just curious to see how many investors we have here?

    Who's going to get in on this craze?
    Maybe day trade it on opening day? Or hold out for a few months.

    Personally, I think the IPO will eventually (a couple years) kill Facebook.
    To answer your question seriously, NOBODY around here I'm sure is going to get in on the IPO -- even if they wanted to.

    Getting IPO stock boils down to more of "who you know" than anything else. The IPO stock options are given only to certain individuals. Usually, the "general public" doesn't get a slice of it until the stock is actually listed and traded -- and then goes into the stratosphere. In other words, the left overs. Nothing guaranteed.

    The people who are getting a share of the IPO are getting the stock at a super low price (the amount that's invested). Once the shares go "live", the stock is going to go through the roof. At that point, many who got in on the IPO are going to sell on the open market and become instant millionaires; the millionaires that have a share of the IPO are going to be come multimillionaires...

    Once those inflated shares are out on the market that's when your average Joe is going to be logging into e-trade or whatever to buy the shares at the super high price. And then the roller coaster journey of the stock will begin. It might keep going up, it might go down. It might tank over time. Or it might end up being the price of a share of Google or better!

    So sadly no, nobody around here is going to get in on Facebook's IPO.
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  • Profile picture of the author mediadeveloped
    If you're going to jump in on FB ...wait it out a bit. Insiders will have the initial price inflated.
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  • Profile picture of the author MattCatania
    We can't base what MAY happen with Facebook to what ACTUALLY happened to Myspace when they went public.

    IMO, Facebook is in a better position than Myspace was... but I can't see into the future, so I'll sit back and watch with eager eyes.
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    Logic outweighs all.

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