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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."
Target (NYSE: TGT) Stock Up on Earnings, But Slowdown Ahead
Target (NYSE: TGT) stock was up 2% in early morning trading after the company delivered a strong earnings report before the bell today (Wednesday).
Target Corp. reported earnings Wednesday morning, with a net earnings per share of $1.04 compared to analysts' expectations of $1.01 per share. Adjusted earnings per share, a measure the company believes is useful in providing period-to-period comparisons of results of its U.S. operations, was $1.11 in the first quarter of 2012, up 11% from $0.99 in 2011.
Same store sales rose 5.3% in the quarter, the highest growth in six years as consumers took advantage of the warm winter in many regions.
"We're very pleased with our first quarter earnings, which benefited from better-than-expected sales," said Gregg Steinhafel, chairman, president, and chief executive officer of Target.
But a continued Target stock rally is in jeopardy as 2012 bears a feeble retail outlook and cautious investor sentiment.
"We're in a period where there's little conviction to buy," Richard Cripps, chief investment officer at Stifel Financial, told USAToday. "The road ahead is too uncertain because of European concerns and the presidential election later this year."
Investing in Biotech Stocks: Why the "ASCO Effect" Rally Could Start Tomorrow
Get ready to profit from the "ASCO Effect."
Each June, the American Society of Clinical Oncology (ASCO) hosts its annual meeting – an event that's attended by 30,000 people and the scene of 4,000 presentations.
And each May, just ahead of this crucial gathering, a select group of oncology stocks takes investors on a pretty wild ride – almost like clockwork.
That's the "ASCO Effect."
The catalyst for this big run-up – in which some stocks double, triple or quadruple in price (or more) – is well-known. A few weeks ahead of the meeting, ASCO posts drug-research abstracts of some of the presenting companies on its Website; investors look at the clinical-trial results contained in the abstracts, and key on the most-promising players – igniting share rallies so torrid that they're remembered for years.
This year's ASCO annual meeting is scheduled for June 1-5 in Chicago.
But, according to the latest reports we've seen, the abstracts are due out at 6 p.m. (EDT) today (Wednesday).
If that deadline is met, you can bet that investors will be scouring those abstracts all night.
If you want an example of the ASCO Effect in action, just look at what happened with OXiGENE Inc. (Nasdaq: OXGN) shares just 12 months ago. As May opened last year, OXiGENE was a relatively unremarkable biotech stock. Indeed, the company was juggling a lot of problems.
OXiGENE faced questions about its management turnover and its cash position. Shareholders were worried about its cancer-drug pipeline. And the stock was trading at less than $2 a share.
In fact, OXiGENE shares had been one of the biotech sector's worst performers in 2010, and the company had to endure the ignominy of a reverse stock split in February 2011.
Then came the ASCO Effect.
Target's (NYSE: TGT) Earnings Follow Weak Reports
Investors looking for clues on the struggling U.S. retail landscape should tune in to Target Corp.'s (NYSE: TGT) earnings when the company reports today before the bell.
April marked the slowest growth in retail sales of the year, growing at a morbidly slow 0.1% compared to 0.7% in March. The major categories that led to the decline were building materials, clothing, and department store sales.
Economists cite the drop off from record warm weather during the previous three months as a catalyst for the sluggish growth.
However, it seems like Washington is taking the easy way out by blaming the weather and possibly an early Easter for the decline.
What seems to be more of an issue here is the fact that the consumer environment remains a very tough arena to sustain growth in right now.
That sets the stage for Target.
When Target reports its earnings this morning it will give investors a better idea of where consumer spending is headed following a slow spring.
JPMorgan (NYSE: JPM) CEO Jamie Dimon Can Wallow in $23 Million
JPMorgan (NYSE: JPM) CEO Jamie Dimon continued his apology and damage control roadshow Tuesday when he addressed shareholders at the bank's annual meeting.
Even amidst regrets over the massive $2 billion trading loss, the merciful bunch of investors approved Dimon's $23 million pay package.
The repentant Dimon briefly addressed the group after the meeting began, requesting forgiveness.
"This should never have happened. I can't justify it. Unfortunately these mistakes were self-inflicted," Dimon admitted.
According to preliminary votes, an overwhelming 91.5% of shareholders approved Dimon's $23 million in salary and bonus for his 2011 performance, the same amount the 56-year-old CEO received in 2010.
Good news considering the Justice Department has started a probe into the $2 billion trading loss at JPMorgan, The Wall Street Journal reported. With few details about the investigation, The Journal noted that the inquiry has yet to zero in on what legal infractions may have been committed.
Nell Minow, co-owner and board member of research firm GMI Ratings, told Bloomberg News that the majority of votes regarding compensation and other topics were most likely cast before the loss was announced.
"I don't think that the vote will be indicative of shareholder concerns on this issue. It's unusual to have such shocking and bad news come in after most of the votes have been cast," Minow said.
Dimon, no doubt anxious to exit from the piercing eyes of concerned shareholders, moved the meeting along quickly, with the official assembly lasting just shy of an hour.
But Dimon left the pow-wow only to be greeted by a crowd of protesters, making its presence loud and clear with signs that criticized the $2 billion loss as well as the bank's actions in the housing market.
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.
Groupon (Nasdaq: GRPN) Stock Soars – But Red Flags Are Flying
Groupon Inc. (Nasdaq: GRPN) stock soared Monday after the close when the company reported its first quarterly profit ever.
The world's largest daily deal company earned 2 cents per share in the first quarter of 2012, versus a net loss of 41 cents a share in the same quarter a year earlier. Revenue was $559.3 million, an 89.3% year-over-year increase compared with $295.5 million in the first quarter of 2011.
North American sales leapt 74.6% to $238.57 million, while international sales climbed 101.8% to $320.72 million.
The numbers handedly beat Wall Street's expectations. The consensus estimate from Thomson Reuters was for the company to post earnings of a penny per share on revenue of $531 million.
Following the earnings announcement, Groupon stock skyrocketed nearly 18% in extended hours trading to $11.735.
In morning trading Tuesday, Groupon shares rose more than 20% to $14.93.
CEO Andrew Mason gushed in a statement, "We are pleased to report a record quarter that demonstrates our progress in unlocking the opportunity in local commerce for merchants and customers worldwide."
Looking forward, the Chicago-based company projected second-quarter revenue of $550 million to $590 million, rendering a 40% to 50% year-over-year leap. The Street expects revenue to hit $558.7 million.
The announcement and the stock's ascent comes after shares hit an all-time low of $9.63 during last Friday's trading session. That marked a 52% drop from the company's November 2011 initial public offering price of $20.
But not everyone was sold on Groupon's turnaround.
"While Q1 results are a step in the right direction, we want to see more evidence of sustainability in the model," wrote Herman Leung of Susquehanna.
Jordan Rohan of Stifel Nicolaus, among other analysts, also expressed concern over the expiration of the post-IPO lockup on Groupon's shares. The company said on Monday that those lockups expire on June 1, affecting about 620 million shares.
Skeptics abound and one good quarter does not ensure another.
Yahoo (Nasdaq: YHOO) Needs More Than Just a New CEO
The black cloud following Yahoo! Inc. (Nasdaq: YHOO) seems bigger than ever.
Just one day after he was forced to leave the forlorn Internet company for padding his resume, reports surfaced that ex-Yahoo CEO Scott Thompson revealed he has cancer.
According to a report in The Wall Street Journal, citing unnamed sources, Thompson told Yahoo's board and several colleagues of his thyroid cancer before resigning Sunday.
A source told The Journal that Thompson's decision to leave his position at Yahoo was in part influenced by his cancer diagnosis.
News broke last week that Thompson embellished his resume with a degree in computer science, when he actually earned a degree in accounting from a small Massachusetts college.
Thompson was hired in January to replace Carol Bartz, who was fired by phone last September.
In the revolving position at Yahoo, former head of global media Ross Levinsohn has been named interim CEO.
New CEO Boosts YHOO
Levinsohn had a triumphant stretch running Internet services within Rupert Murdoch's media empire at News Corp. before Bartz lured him to Yahoo in 2010. Levinsohn previously ran ad sales for Yahoo's Americas unit.
Yahoo investors applauded the media veteran's appointment. Yahoo shares tacked on 2.2% in premarket trading Monday ahead of a nasty open for U.S. markets.
Levinsohn has significant credentials as a negotiator. Before coming aboard at Yahoo, he had a history of recognizing and acquiring an assortment of digital media companies around the globe. That is a striking comparison to Yahoo's last two CEOs, who had stronger backgrounds in technology than media.
"We view Mr. Levinsohn as well-equipped to lead the organization and to build off the company's core strengths – advertising products and digital media," said Spencer Wang, an analyst with Credit Suisse.
But Yahoo still faces a rocky road ahead.
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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