Investors brace for Facebook debut on Wall Street | Reuters
Reuters – Investors are bracing for Facebook‘s Wall Street debut on Friday after the world’s No.1 online social network raised about $16 billion in one of the biggest initial public offerings in U.S. history.
“A 15 to 20 percent pop is in the realm of possibility,” said Tim Loughran, a finance professor at the University of Notre Dame. “Given they already moved their IPO range up and increased the size, that’s bullish to begin with.”
Facebook priced its offering at $38 a share on Thursday, but the price could be higher when shares begin trading under the FB symbol on the Nasdaq at around 11 a.m. Eastern Time.
Some expect shares could rise 30 percent or more on Friday, despite ongoing concerns about Facebook’s long-term money-making potential. An average of Morningstar analyst estimates puts the closing price for Facebook shares tomorrow at $50.
The IPO, expected to mint more than a thousand paper millionaires at the company, has received wall-to-wall media coverage and sparked hopes of a boom in sales of everything from San Francisco Bay Area real estate to automobiles.
Video – How Facebook Makes Money:
Strange Random Wall Street Quote:
“Be patient – there’s the rarest thing on Wall Street.” – Jeff Saut
- Insight: Who got Facebook IPO shares? Fairness may not come into it – Reuters (reuters.com)
- INSIGHT-UPDATE 1-Who got Facebook IPO shares? Fairness may not come into it – Reuters (reuters.com)
- Facebook Prices Its IPO at $38 – Wall Street Journal (blog) (blogs.wsj.com)
- Facebook’s Landmark IPO Prices At Top Of Range (snspost.com)
- Facebook Kicking Off IPO With All-Night Hackathon (newser.com)
- WSJ: Facebook to sell shares for at least $38 a pop (thetechblock.com)
- Facebook IPO Settled: $38 Per Share (newser.com)
- Facebook shares set to debut on Wall Street (fsn.typepad.com)
- Facebook prices at top of range in landmark IPO (ibnlive.in.com)
- Zuckerberg Won’t Share – IPO Will Consolidate His Total Control (siliconvalleywatcher.com)
Posted on May 18, 2012, in Article, Video and tagged Facebook, Hewlett Packard, Initial public offering, Reuters, San Francisco Bay Area, Starbucks, University of Notre Dame, Wall Street. Bookmark the permalink. Leave a comment.