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Cash in as the "Alibaba Shockwave" Creates the World's First Trillion-Dollar Company

How many times have you been reading about a long-ago historical event – or been watching a documentary about it on the History Channel – and thought to yourself: “Wow, it would’ve been really cool to have actually been there to see this happen.”

I couldn’t agree more: As a big history buff myself, I find myself making that statement on a regular basis.

  • Facebook IPO

  • Why Facebook Stock is doing a Faceplant Forget all the hype.

    And you can even forget that I told you Facebook was a hyped-up offering, and that I would sell my shares if I was an insider, and that I definitely wouldn't buy the IPO on its first trading day.

    Did you listen to me?

    If you didn't, and you own Facebook stock (Nasdaq: FB), here's what you have to worry about.

    The Facebook Stock Concerns



    First, did you get your confirmation? Probably by now you did.

    But the problems that NASDAQ OMX Group had sending out electronic trade confirmations in the heat of trading on Friday were staggering. (They eventually went "manual" on the opening day of the biggest tech offer ever on the biggest tech exchange in the world... how ironic... manual.)

    There's nothing out there, nothing anywhere about who or how many people did or didn't get confirmations or when they got them. There's nothing out there because the exchange is panicking, and if thousands of confirms, or tens of millions of shares, are up in the air... well imagine what could happen.

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  • There's More to the IPO Market Than Facebook (Nasdaq: FB) Admit it, you love the Facebook IPO (Nasdaq: FB).

    Besides its $100 billion-plus stock valuation, the social media company has over 900 million active users worldwide.

    Plus, at $16 billion, Facebook will go down as the second largest U.S. IPO ever, trailing only Visa's $17.9 billion deal in 2010.

    But let's not forget, this isn't the first IPO that's gotten a ton of attention, and it won't be the last.

    In fact, the hype surrounding Facebook stock is overshadowing the entire IPO market, clouding the big picture, and perhaps, some worthwhile investments.

    So let's take a look at what else has been going on in the IPO market and what's coming up that deserves your attention.

    To continue reading, please click here...
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  • Facebook Stock Price Gets Small Bump in Lackluster Debut In what was one of the most highly anticipated initial public offerings in history, Facebook (Nasdaq: FB) finally made its debut among much fanfare and frenzy Friday.

    But the Facebook stock price failed to soar as high as the hype. While not exactly a dud, the intro was definitely subdued.

    Shares opened around 11:30 a.m. in New York at $42.05, up about 11% from Facebook's IPO price. Momentum quickly ebbed, and shares dropped as low at the $38 IPO price in the first half hour of trading.

    By 3 p.m. shares were hovering just above $38. But with an hour of trading still to go, investors shouldn't get complacent.

    "The day isn't over," cautioned Money Morning Chief Investment Strategist Keith Fitz-Gerald. But regarding Facebook's debut, "initial trading has not been impressive."

    Read More...
  • Heavy Betting in the Middle of Mayhem There's going to be a lot of very heavy betting over the next few days, weeks, and months on what's going up, what's going down, and what's going around:

    1. How far will Facebook IPO price go?
    2. How far DOWN from here will JPMorgan go, with the FBI and DOJ now sniffing around?
    3. How far AROUND the globe will the fallout be if Greece loses its game of chicken?


    If you don't have the stomach for what's going to feel like an out-of-control rollercoaster ride, sideline yourself.

    If, on the other hand, you like a lot of action, welcome to Mayhem - the preamble month to what will likely be the Summer of Some Discontent.

    That is, unless you like rapid-fire trading.

    Which, by the way, is not just fun, but can be very, very profitable. I'm in, and so are the subscribers to my Capital Wave Forecast. We're gearing up for some heavy betting in the weeks and months ahead.

    So, what's front and center today? You know. The big three headlines: Facebook, JPMorgan Chase, and Greece. Are you sick of hearing about them? I'm not. I like trading the headlines.

    Here's my "heads-up" on the big three headlines.

    To continue reading, please click here... Read More...
  • Facebook Stock Ready to Roll – But Where Will it Go? The Facebook IPO price was set and the stock is ready to start trading - but will it live up to its hype or sharply sell-off?

    The social media giant priced at $38 a share, the company announced after market close yesterday (Thursday).

    That makes Facebook the largest tech IPO in history, valued at $16 billion.

    It's the third largest U.S. IPO ever, behind first place Visa at $19.7 billion and then General Motors, which raised $18.1 billion.

    While the stock has created unrivaled investor frenzy, there is a wide range of predictions for how Facebook will do in its first trading day - and who the real winners will be.

    "The ones who make out on IPOs are the early investors, venture capitalists, founders, and underwriters," said Money Morning Chief Investment Strategist Keith Fitz-Gerald. "The public almost always goes along for the ride...whether or not they get taken for a ride remains to be seen." The Facebook stock price will be determined when it starts trading today at 11 a.m.

    Where the cutoff is for considering the IPO a success varies - with many thinking anything below 50% would be a disappointment.

    "I think anything over 50 percent will be considered a successful offering - anything under that would be underwhelming, Jim Krapfel, an analyst at Morningstar, told Reuters. "A lot of retail investors are not concerned about valuation. That's what is going to drive the first day pop."

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  • Investing in IPOs: Why You Should Think Twice About Facebook (Nasdaq: FB) Ever since the Dutch East India Company became the first to issue stocks and bonds to the public in 1602, investors have seen initial public offerings (IPOs) as the road to riches.

    The current hype surrounding the Facebook IPO is just one example.

    But investors tempted by Facebook (Nasdaq: FB) may want to think back to the dotcom craze of the late 1990 s. You'll remember it spawned a feeding frenzy among investors chasing after internet IPOs on an almost daily basis.

    It wasn't long before investors on Main Street took the bait after watching hordes of new college graduates in Silicon Valley become instant millionaires.

    But as companies with unproven business models executed massive IPOs with sky-high prices, every day investors who succumbed to the siren call got clobbered.

    Pets.com for instance, raised $82.5 million in an IPO in February 2000 before imploding nine months later. And EToys.com stock went from a high of $84 per share in 1999 to a low of just 9 cents per share in February 2001.

    In both cases, small investors were left holding the bag. The point is IPOs have always been high-risk, high-reward.

    So, what is an IPO anyway? How do people get rich-and go broke-- so fast? And, more importantly, should you invest in an IPO like Facebook for instance?

    Here's what you need to know...

    To continue reading, please click here...

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  • The Facebook IPO Facts: The Good, The Bad and The Ugly Face it, you want it. It seems that everyone wants a piece of the Facebook IPO.

    But, can you handle the truth? Will the hyped sensationalism be a boon or a boondoggle?

    I'm not going to tell you what to do, whether you should buy Facebook sooner rather than later. That's up to you.

    However, I will tell you that I won't be buying it right away, but, I will be buying it if...

    First though, here's the good the bad and the ugly truth about the company, the IPO and owning "FB."

    The Good News About the Facebook IPO

    The good news is overwhelming if you're Mark Zuckerberg, any of the company's founders, executives, or venture capital backers, many of whom own Facebook stock (Nasdaq: FB) at a dollar a share.

    So far, the target range the stock is expected to be priced at--which was originally $28-$35/share-- has been raised to between $34-$38.

    And it could very well go higher before tonight's pricing deadline. The amount of shares to be floated is being raised too.

    That's all good news for the insiders, the underwriters and the company itself.

    FB is causing its own IPO hype, partly because it will be the largest IPO in U.S. history, in terms of the value it will put on the company, which will likely approach $100 billion. However, Visa in 2008 and GM in 2010 will have raised more money on their IPO debuts. (I know, calling GM's IPO a debut is strange to me too.)

    Facebook will raise at least $13 billion (at the lowest end of the price and share offering range) and bank some $9 billion in cash on its balance sheet. That's good news.

    But better than that, the company will now have a huge hoard of stock as currency to use to buy up companies and technology to advance its master of the social media universe status.

    The other good news is that... Read More...
  • Facebook IPO Size Hits 421 Million Shares As it approaches, the Facebook IPO just got bigger as more early investors look to cash out.

    Just after the Facebook IPO price range got a boost, Facebook investors raised the number of shares they are selling in the social network giant's initial public offering. While the company isn't selling any more, individual investors like Accel Partners, Goldman Sachs Group Inc. (NYSE: GS) and others will sell an additional 83.8 million shares.

    That brings that total number of shares to be sold to 421.2 million, according to a new regulatory filing, and lifts the sale to as much as $16 billion.

    While the news was welcomed by ordinary investors clamoring for shares as Facebook debuts, it's curious why more and more insiders are racing to sell part of their stake. The move may just be a signal of the IPO's astronomical demand - but could make some investors wary.

    "If the demand wasn't there, they wouldn't have upsized the deal," Greenwood Capital's Walter Todd told Bloomberg News. "On the other hand, when you see insiders unloading their stakes, you start to wonder why. I could see it turning some institutional investors off."

    Read More...
  • Five with Fitz: What I See When I Look Over the Horizon When you've been working the markets as long as I have, you learn that the biggest dangers are always found in a place just over the horizon.

    It's why I spend my time hunting for stories, news items and opinions that in the old days were considered far "below the fold."

    Invariably, what I am looking for is the stuff that everybody else has missed.

    Because I believe that's where the real information is -- especially when it comes to uncovering profitable opportunities others don't yet see or understand.

    It's the story behind the story that interests me. To find it, you need to go beyond the headline news.

    In that spirit, here's my take on five things that I'm thinking about right now.

    To continue reading, please, click here... Read More...
  • Facebook's IPO Price Too High? Not For The Woz The Facebook IPO just got big-name support from the tech world.

    Apple Inc. (Nasdaq: AAPL) co-founder Steve "The Woz" Wozniak said in an interview with Bloomberg Television that he would invest in Facebook, regardless of the price.

    Wozniak, who built the first Apple computer with Steve Jobs and co-founded the company with him in 1976, also commented in the May 12 interview that he thought Facebook founder Mark Zuckerberg combines the talents of the late Jobs and of Wozniak himself.

    "I was thankful to have a partnership with Steve Jobs and I see Mark Zuckerberg closer to the combination of us," said Wozniak. "When he speaks he speaks with a lot of idealism for the users and a lot of good ideas for the product overall."

    The favorable Facebook fodder came just as Facebook upped its projected IPO price from $28 - $35 per share to $34 - $38 per share. That gives the social networking company a valuation exceeding $100 billion.

    Facebook stock (Nasdaq: FB) is slated to start trading Friday.

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  • Here's What Happened to the Tech Stock Rally The tech stock rally reflected in the Nasdaq had persisted until last week – but has largely faded. Money Morning Chief Investment Strategist Keith Fitz-Gerald joined Fox Business’ "Varney & Co." to explain what's going on. Watch this clip to see what Fitz-Gerald tells investors about tech stocks – with a special look at Cisco Systems (Nasdaq: CSCO).

    Loading the player ... jwplayer("container").setup({ autostart: true, controlbar: "bottom", flashplayer: "http://s3.amazonaws.com/moneymappress/player.swf", file: "2012/May/2012_5_10_KFonV_MoneyMorning.mp4", height: 360, width: 600, provider:... Read More...
  • Facebook Takes a Step Closer to Its Own Search Engine And Facebook's reach grows bigger...

    Microsoft (Nasdaq: MSFT) announced this week it is revamping its Bing search engine to include content from Facebook and other social media platforms.

    The move introduces a new sidebar to Bing, which aims to connect users with friends and other aficionados who can provide help, assistance and advice related to the performed search.

    The Redmond, WA-based Microsoft said the foray is based on the fact that "90% of people consult with a friend or expert before making a decision."

    The venture will hopefully give Bing some bang. Data reveals that Bing has about 15% of the U.S. search market, while Internet search behemoth Google (Nasdaq: GOOG) commands a 66% portion. Microsoft is hoping many will likethe new element and it will entice people to favor Bing when Web searching.

    The new service will appear to the right of all search results, and will highlight a feature dubbed Friends Who Might Know.

    Microsoft wrote on its blog, "Bing suggests friends on Facebook who might know about the topic-based on what they "like," their Facebook profile information, or photos they have shared so you can easily ask them about relevant experiences and opinions. For example, if you're searching for diving spots in Costa Rica...you may discover that one of your friends knows a great spot, based on photos from their last trip."

    Bing will also flag other topic "specialists," identified from their posts on Google's social network Google+, Twitter, Foursquare, LinkedIn and Quora.

    The feature will roll out shortly in the United States, according to Microsoft. The company did not comment about other locations.

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  • Facebook App Store Will Boost Popularity, Profit Is there anything Facebook can't or won't do to keep its massive user base happy?

    The social network giant just announced plans for a new Facebook App Store where Facebook friends can purchase games and other applications on its heavily trafficked site.

    The new Facebook App Store, which will be formally known as the Facebook App Center, will feature applications for web browsers, and be available via the Apple Inc. (Nasdaq: AAPL) iPhone, Android smartphones, PCs and tablets.

    The move will provide a platform for software developers to sell their products on the social site.

    With over 900 million users worldwide, the new Facebook App Center opens up an alluring venue for developers and entices the social networking Web site's scores of members to keep coming back for new, current and popular applications.

    Facebook's App Store is being launched in the midst of the company's highly anticipated, much-hyped initial public offering, expected on or around May 18.

    And the Facebook App Store in not merely in the works, it is set to roll out in the next few weeks.

    Click here to continue reading...

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  • Facebook IPO Roadshow Continues without Retail Investors – and Zuckerberg Facebook Inc. (Nasdaq: FB) launched its roadshow Monday in New York, with planned stops at several prominent U.S. cities before the trip ends.

    Spotted sporting his trademark hoodie, 27-year-old CEO and founder Mark Zuckerberg was present at the heavily attended event in NYC.

    But on Tuesday, as hundreds herded into Boston's Four Seasons hotel, Zuckerberg was nowhere to be seen.

    "It's too bad Zuckerberg wasn't there. It was kind of disappointing," H. Scott Smith, senior equity analyst at Game Greek Capital, told the Boston Herald.

    Click here to continue reading...

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  • Facebook IPO Price Range Values Company Near $100 Billion A Facebook IPO price range has been set, valuing the company at approximately $85 to $95 billon, The Wall Street Journal reports.

    Facebook has set a range for its initial public offering of $28 to $35 per share. At that price level, the social network giant would raise just over $10 billion.

    Those lofty numbers would put Facebook on the path to becoming the most valuable Internet company in the United States.

    The price range is surprisingly lower than what many industry analysts had expected. The consensus was closer to $40 per share.

    Greencrest Capital Management analyst Max Wolf told MSNBC that Facebook most likely subdued the price range for the storied IPO due to recently passive mood surrounding the markets.

    "It feels to me that as market sentiment gets less bright, people are getting more nervous," said Wolf.

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