Kerri Shannon
Kerri'S LATEST HEADLINES
- 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."
- Profit Falls Ahead of Facebook IPO – Will Investor Interest Follow?
- Could Goldman Sachs (NYSE: GS) Earnings Slip Send Investors Bailing on Stock?
- Possible Dates Released for Facebook Stock to Hit Markets
- Tech News: Facebook (NASDAQ: FB) Scores Big with Both AOL Patent Sale and Instagram Deal
- What the JOBS Act Means for Investors – and Why It's "One Giant Leap for Fraudsters"
- Sorry, NYSE: Facebook (NASDAQ: FB) Will Trade on Nasdaq
- Will JOBS Act Subject Investors to Another Groupon Inc. (Nasdaq: GRPN)?
- Stock Market Today: Why Avon Products (NYSE: AVP) Should Consider Coty Inc. Offer
- Retail Stocks: Best Buy (NYSE: BBY) Not a Good "Buy" At All