By now, everyone has chimed in on the Facebook IPO. Most of what I read has been (in my opinion) crap.
Here are 10 thoughts of my own.
#1) I told you so...(So did a lot of people)
#2) Congrates to the Zuckerberg's. I hope you continue to be the nice people you seem like.
#3) I read an article that I cannot find that shows the real current value of Facebook around $13.60.
This was based on current revenue and future growth aligned with investor expectations.
#4) $38.00 was the right price for the IPO. Why not? The moment the stock started to trade, it was the market that determined the price. The drop in FB share price could be related to Greece or any other reason that stocks raise and lower without news. You cannot fault Morgan Stanley for getting the best price for their client (FB) and as for their retail clients, I am certain that the caveat sheet for investing in FB IPO was at least a page long. After trading started, the price hit a $45.00 target. Somebody bought a 45. Somebody either placed a market order or a limit order. Now the market owns the stock and it is up to them to determine the price.
#5) FB did not owe it to the investing public to leave value on the table. I read that someone said it should have been priced at $28.00 so the retail investors could make a profit. Why?
#6) Back to #1. If I told you so and lots of people told you so, what did we tell you? That FB was overpriced and to stay the hell away from it. The most amazing thing is, (and I do not have stat to back this up) I would guess that the #1 place most people read about staying away from investing in FB was....their Facebook page.
Social Media is huge and there is a lot of money to be made in it. It is only going to get bigger too. I just do not think that FB will be the vehicle at any price above a valuation that is in the teens.
The last 4 are coming....
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