Facebook to Set I.P.O. Price Range at $28 to $35
dealbook.nytimes.com
Facebook to Set I.P.O. Price Range at $28 to $35
1–10 of 34 posts
Re: Facebook to Set I.P.O. Price Range at $28 to $35
#2In case anyone else as confused about what an IPO road show entails, here is a description I found: http://moneycentral.hoovers.com/business-information/--pagei...
Re: Facebook to Set I.P.O. Price Range at $28 to $35
#3Why oh Why is the headline about the stock price? Apple's price is $585ish right now. Apple is not 10 times more expensive than Facebook would be-- only a bit more than 5 times as expensive. Facebook's price range is around $86B.
It seems a lot of people want to buy a car for a "monthly payment they can afford" and car dealers have long sold people terrible terms and terribly overpriced cars by structuring the "monthly payment" lower so the person thinks the car is cheaper. Its amazing people fall for this.
Yet people react the same way to stock prices and NYT is putting the stock price in the headline?
How about "Rather than the $100B expected, Facebook is set to IPO at around $86B".
And more importantly-- and relevant to anyone who might want to buy the stock-- what's that work out to as a PE[1]? Doesn't appear anywhere in the NYT article that I could see.
So, is $86B expensive? Cheap? We don't know.
[1] On a trailing twelve months basis. I'm sure its in the prospectus, and anybody with financial literacy will look it up before buying the stock, but I still bet that a lot of people will say "$35? I can afford $35!" or "I've got $3,500 in my brokerage, I'll buy 100 shares! Can you imagine what those 100 shares will be worth when Facebook catches up to google and is priced at $350 a share?!" I don't think Facebook will be worth $860B+ in the next decade.
Re: Facebook to Set I.P.O. Price Range at $28 to $35
#4In case anyone else as confused about what an IPO road show entails, here is a description I found: http://moneycentral.hoovers.com/business-information/--pagei...
To me, this link is broken.
Re: Facebook to Set I.P.O. Price Range at $28 to $35
#5Why oh Why is the headline about the stock price? Apple's price is $585ish right now. Apple is not 10 times more expensive than Facebook would be-- only a bit more than 5 times as expensive. Facebook's price range is around $86B. It seems a lot of people want to buy a car for a "monthly payment they can afford" and car dealers have long sold people terrible terms and terribly overpriced cars by structuring the "month…
Because Facebook hasn't split it's stock in a while, so talking about price per share has a common meaning for everyone that owns shares.
I would imagine the majority of people who own Facebook shares know exactly how many shares they own and not an exact percentage of the company.
Re: Facebook to Set I.P.O. Price Range at $28 to $35
#6Looks like a stock price of $31.50 would give facebook a P/E ratio of around 60. For comparison, GOOG is 18.5 and AAPL is 14.
More financials are available from the updated S-1: http://sec.gov/Archives/edgar/data/1326801/00011931251220819...
And it looks like Q1 2012 net income was actually lower than Q1 2011. Oops!
Re: Facebook to Set I.P.O. Price Range at $28 to $35
#7Why oh Why is the headline about the stock price? Apple's price is $585ish right now. Apple is not 10 times more expensive than Facebook would be-- only a bit more than 5 times as expensive. Facebook's price range is around $86B. It seems a lot of people want to buy a car for a "monthly payment they can afford" and car dealers have long sold people terrible terms and terribly overpriced cars by structuring the "month…
As the phrase goes, a fool and his money are soon parted. Along the same mindset are people who want to wait for a split to get in. I always chuckle a little inside when I hear that and then try to educate on why that's not necessarily a good thing.
Back to Facebook. I haven't looked at the financials, but regardless of what they are it's safe to say the share price will rise quickly due to the reason you stated, and that's of course why they did it.
A lot casual investors will see this as a way to fund their child's college education and jump in as soon as they can, no matter what the mark-up. Who knows, maybe this is the next MSFT or AAPL. We'll see where everything settles after the irrational exuberance of the IPO hits. I don't think this will be another GRPN or ZNGA. Even though they were both rather popular, neither of them had the number of eyes on them that Facebook does. This is set to be the most oversubscribed IPO in as long as I can remember.
Re: Facebook to Set I.P.O. Price Range at $28 to $35
#8Looks like a stock price of $31.50 would give facebook a P/E ratio of around 60. For comparison, GOOG is 18.5 and AAPL is 14. More financials are available from the updated S-1: http://sec.gov/Archives/edgar/data/1326801/00011931251220819... And it looks like Q1 2012 net income was actually lower than Q1 2011. Oops!
Oops misread OP
Re: Facebook to Set I.P.O. Price Range at $28 to $35
#9Why oh Why is the headline about the stock price? Apple's price is $585ish right now. Apple is not 10 times more expensive than Facebook would be-- only a bit more than 5 times as expensive. Facebook's price range is around $86B. It seems a lot of people want to buy a car for a "monthly payment they can afford" and car dealers have long sold people terrible terms and terribly overpriced cars by structuring the "month…
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Re: Facebook to Set I.P.O. Price Range at $28 to $35
#10Looks like a stock price of $31.50 would give facebook a P/E ratio of around 60. For comparison, GOOG is 18.5 and AAPL is 14. More financials are available from the updated S-1: http://sec.gov/Archives/edgar/data/1326801/00011931251220819... And it looks like Q1 2012 net income was actually lower than Q1 2011. Oops!
Oops misread OP
That's why its compared to the same quarter last year (Q1 2011) and not sequentially