Facebook on the open market is indeed a big gamble. Many of the recent tech IPOs have failed miserably; Zynga and Pandora for example.
However, if you can get FB shares at the underwritten value ($38) before it hits the market, you can make a quick buck.
A couple of my friends I've known from high-school will become multi-millionaires tomorrow! w00t!![]()
Facebook on the open market is indeed a big gamble. Many of the recent tech IPOs have failed miserably; Zynga and Pandora for example.
However, if you can get FB shares at the underwritten value ($38) before it hits the market, you can make a quick buck.
A couple of my friends I've known from high-school will become multi-millionaires tomorrow! w00t!![]()
People are naysaying FB because of the $100B market cap on $1B of earnings.
There is more to it than just that,. But really, how will they grow their earnings?
But most recent Nasdaq IPOs have typically begun trading a few minutes before 11 a.m. ET.
You should have asked them to get access to buy some shares at the listing price.
The people running Facebook don't care. This is a huge cash grab by everyone involved and they are going to jump ship as soon as they can and take their money and run.
I'd recommend getting in early and participating in the cash grab. After the initial dump in a week or so, then pick it back up cheap if you don't want to assume the risk today but still want to invest long term in them.
The only investors that will have access to FaceBook at IPO price are the top clients at the investment banks underwriting the offering. FB employees won't get a sniff.
you won't get an allocation at fidelity, i have well over that amount in assets (I worked at one of the other companies listed in the OP article) and haven't gotten a single share of any hot IPO they offered. But of course I put in for an allocation of FB just in case.
Ok I lied, I got a whole 50 shares allocated to me.
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Ok I lied, I got a whole 50 shares allocated to me.
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That all depends on how their employment offers are written - if there's an option clause, then they would get a flat number of shares regardless of the price.
Those are equities awarded directly by FaceBook, I'm talking about the IPO underwritten by the investment banks.
You guys are funny, comparing FB to Zynga and Pandora and Groupon and Myspace like it's even close. The only two giants of advertising will be Facebook and Google when the dust clears. Look at LinkedIn, you would have doubled your money if you bought last year. Yes, I know it's at 700 P/E or whatever, but let's not even try to compare diminutive LinkedIn to FB.
I'd also like to add that the very reason you guys are naysaying Facebook (everyone and their mom will buy it) is the very reason they're successful and will continue to make money (everyone and their moms are using it). Get in early and double your money, it's that simple.
That all depends on how their employment offers are written - if there's an option clause, then they would get a flat number of shares regardless of the price.