Tag Archives: allfacebook

Geeking out over Facebook’s IPO

The IPO is nigh and everyone is pretty much enthusiastic about this era defining IPO that will hopefully spur more IPO’s.

The Wall Street Journal created a timeline narrating Facebook’s path to IPO.

The NYT ran a lengthy article on Zuckerberg last weekend and basically everyone seems to want to get in on the action. See this article on buying FB shares in the private market.

For full-out FB geekiness, check out AllFacebook -the unofficial Facebook blog.

However, there are a few people in the finance community who are a bit more cautious.

PeHub, a popular blog in the PE/VC world, showed poll results wherein most of their finance readers do not expect shares to double on first day.

Just 95 (or 21.1%) of the 451 people who took our poll expect Facebook’s shares to double or more in price on the day of their IPO. (Complete results are in the table below.)But readers are still expecting a sizable first-day pop: Nearly 200 (or about 43%) expect the stock to gain anywhere from 25% to 100%, our poll shows.A significant number (160 people, or about 35% of the total) expect the stock to gain less than 25% on its first day.This is a suprise, particularly since shares of professional social network LinkedIn more than doubled from their IPO price of $45 on their first day of trading in May 2011. It seems reasonable that Facebook will be trading above $70 per share (double the top of its price range) after its first day.

Mashable just released an article saying half of Americans thinks it’s Facebook is just a fad.

A poll conducted by the Associated Press and CNBC found that 46% of respondents think Facebook will fade away as new platforms come along in the future. However, about 43% believe the site will likely be successful for the long haul.

The study also asked respondents if buying Facebook shares would be a good investment that would outperform other investments — about 51% believed it would be a good investment, while 31% disagreed.

Of course, there are fewer of these more cautious stories. With the IPO a few days away, we will see how PeHub’s shorter-term poll prediction will fare. As for the long-term, we will just have to wait and see a little longer.