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As most of you know, Facebook (FB) stock will IPO on May 18, 2012 and open for trading sometime in the morning.  Do we buy the Facebook (FB) IPO when it opens for trading or sell the hype?  Here are some common answers to a few questions I received recently.  Live chat -

How do I buy the Facebook (FB) IPO?

Facebook (FB) stock will begin trading on Friday, May 18, 2012.  Most retail investors ( small mom and pop investors aka, the average Joe or Sally ) will not be able to call their broker up and buy FB stock at the set price point on May 17, 2012.  I would bet that 85-90% of Facebook (FB) shares will be allocated to institutional investors or the " big players " on Wall St. who have big accounts with Morgan Stanley, Goldman Sachs, ect.  The only way for small investors to buy the Facebook (FB) IPO will be to buy the stock when it opens up at a huge premium to the set pricing.

Okay, what is the current Facebook (FB) IPO Price Point?

Facebook (FB) stock is indicated to price between $28-$35 after the close on 5/17/12.  However, I could see this range moving up 10% and Facebook pricing at $38-$40 which would be the high end of the range.  The demand for this stock will be like nothing we've ever seen before.  Everyone seems to want a piece of the on the other hand, I will pass on the deal. (*** Update - Facebook (FB) stock prices at $38 *** )

What time will Facebook (FB) Stock IPO Open for Trading on Friday?

Since Facebook is listing their initial public offering on the NASDAQ, there will be a considerable delay.  I would guess that the Facebook (FB) IPO will begin trading between 11am - 11:45am EST.  Google (GOOG) was the same back when it IPO'd in the mid 2000's.

How would you compare the Google (GOOG) IPO to the Facebook (FB) IPO?

When Google (GOOG) came public, it was a much smaller company.  There was still a massive amount of growth ahead of it.  Facebook (FB) on the other hand is coming public as a large developed company with not as much growth because the company already had the huge growth spurt.   Mobile is going to be a huge roadblock for will they monetize that?  Do you click on mobile ads?  I don't!

Should I buy stock in the Facebook (FB) IPO?

No, If you are thinking about buying the Facebook (FB) IPO as an investment, I would wait at least 6 months for the lockup expiration to come.  When the Facebook (FB) lockup period ends, insiders have a chance to sell their stock.  This event usually creates a buying opportunity as major investors sell ahead of the lockup.  LinkedIn (LNKD) provided a buying opportunity and countless other stock as well.

If you plan to trade the Facebook (FB) IPO, just set tight stops and have fun.  You can trade any stock as long as you have an exit point before you go into the trade.

Final thoughts:

While I may try to buy Facebook (FB) stock for a quick trade, I think you would be crazy to buy and hold Facebook stock given the valuation.  FB will be expensive and there are so many unknowns about their growth potential.  Why not buy Apple (AAPL), the best company in the world, for 11 times earnings and has $110 Billion in the bank.  The company also pays a dividend.

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Its funny, I had that 50.00 figure in my mind

since i didnt get in on the IPO , im spread betting on it

options aren't available until the end of the month I thought?

good luck 2 all

Forget all the hype, speculation, and rumors. Focus on the numbers, not the letters. Here’s a quick rundown of the most important and most recent ones.

When Facebook filed for its initial public offering (IPO), I wrote Facebook’s IPO by the numbers. This is an updated post to that article. Now that Facebook has set its share price, we’ve got all the numbers we need.

Here are the numbers you need to know, plus a few extra ones about Facebook in general:

$1 is the salary Facebook co-founder and CEO Mark Zuckerberg will be paid starting in 2013.

2 is the number of classes of Facebook stock; Class A (worth one vote, and available to those who want to buy the company’s stock on the open market) and Class B (worth 10 votes, and only available to select individuals and investors).

15 percent of Facebook’s revenue came from Zynga in Q1 2012, including both payments revenue and advertising that is displayed alongside Zynga games. That’s down from 19 percent in Q1 2011.

28 companies have been acquired by Facebook so far.

38 mentions of the word “privacy” in the eighth and last IPO amendment.

55 mentions of competing and/or partnering companies with Facebook in the eighth and last IPO amendment. More specifically, Google is mentioned 14 times, Google+ is mentioned twice, Microsoft is mentioned 29 times, Twitter is mentioned twice, while both Friendster and MySpace go unmentioned.

39.4 percent year-over-year growth in Facebook’s net income (read: profit) from 2010 to 2011.

46.8 percent year-over-year growth in Facebook’s revenue from 2010 to 2011.

56 percent of Facebook’s revenue comes from advertisers and Platform developers based in the U.S. This number is down from 62 percent in 2010.

57.1 percent of Class B shares (voting control) owned by Mark Zuckerberg.

70 different languages are supported by Facebook.

3,539 full-time employees work for Facebook around the world as of Q1 2012.

$200,000 is the amount Facebook paid for the domain when it finally dropped the “The” from its name in 2005.

$783,529 spent on Zuckerberg’s “comprehensive security program” in 2011, which included the procurement, installation, and maintenance of security measures for his personal residence, annual costs of security personnel, and the use of private aircraft.

2.2 million is the number in square feet Facebook leased for its office facilities around the world as of March 31, 2012.

$8.5 million is the amount Facebook is thought to have paid the American Farm Bureau Federation (FB) for the domain name on November 15, 2010, making the acquisition one of the ten highest domain sales in history.

42 million Facebook Pages with 10 or more Likes as of March 31, 2012.

$65 million is the amount Facebook agreed to settle with ConnectU and the Winklevoss brothers in February 2008. That legal battle is still raging.

$68 million spent on acquisitions by Facebook in 2011. These acquisitions, and in fact all of Facebook’s acquisitions, were not material to its consolidated financial statements individually or in the aggregate.

169 million monthly active U.S. Facebook users as of March 31, 2011.

$240 million is the amount Microsoft invested in Facebook on October 24, 2007, to purchase a 1.6 percent share of the social networking giant at a total implied value of around $15 billion.

300 million photos uploaded to Facebook daily in the three months ended March 31, 2012.

$388 million in research and development expenses spent by Facebook in 2011, or about 10.5 percent of its revenue last year. The company also spent $87 million in 2009 and $144 million in 2010.

488 million monthly active mobile Facebook users as of March 31, 2012. It was over 350 million on September 22, 2011.

526 million daily active users on average using Facebook throughout March 2012.

533,801,850 shares owned by Facebook co-founder and CEO Mark Zuckerberg, or a 28.4 percent stake in the company. Good thing he didn’t sell it, like he wanted to in 2004.

$557 million Facebook’s revenue from payments and other fees in 2011, or about 15.01 percent of its total revenue.

901 million monthly active Facebook users as of March 31, 2012. It was over 800 million on September 22, 2011.

1 billion is the number of monthly active users Facebook is expected to pass this year, possibly in August.

$1 billion was Facebook’s net income (read: profit) in 2011. This is pretty solid given growth from previous years: $229 million in 2009 and $606 million in 2010.

$1.4 billion paid out to developers from transactions enabled by Facebook’s Payments infrastructure in 2011.

$3.154 billion was Facebook’s revenue from advertising in 2011, or about 84.99 percent of its total revenue.

3.2 billion Likes and Comments made per day during Q1 2012.

$3.711 billion was Facebook’s total revenue in 2011. This is lower than some projections, but it’s still pretty solid given growth from past years: 777 million in 2009 and $1.974 billion in 2010.

$3.908 billion was Facebook’s total cash, cash equivalents, and marketable securities at the end of 2011.

$6.84 billion is the amount Facebook is hoping to raise with its IPO for itself.

10.5 billion average number of minutes spent per day by Facebook users on personal computers during January 2012.

$18.41 billion is the amount Facebook is hoping to raise with its IPO for itself and investors.

$104 billion is the valuation of Facebook on the day it goes public.

125 billion friend connections on Facebook as of March 31, 2012.

1 trillion monthly page views on Facebook, according to June 2011 data from Google.
listening to the chatter on cnbc, this is going tobe a risky trade when the -ipo- trading other major holders of the stockare going to sale millions of shares, not countingthe 421 million ipo offer. everyone is saying a lotof investors are going to get trapped in the stock.cramer said that if the opening price is considerablyabove the ipo price, don't buy. the stock is alreadypriced way above the five year forward profit estimates.i don't know what to do. none of the traders i haveconfidence in, are going to buy in the open market.they have all said if you can't get the ipo price, don'tbuy on the pop. they say if you are not a professional,the pop want last long enough for people likeyou and me to get out.

If it is suppose to double, and does, we should not have a problem getting out. 
Be careful
Byd. Gluu. Cool. Should get a pop
Byd. Gluu. Cool. Should get a pop
between $40. to $42. i think we will make somemoney. it all depends on the bid right before open.we have until 11am to make up our mind.that is all that is being talked about tv. don't thinkfor one minute that this sock is not going to pop.the key is to get in at a reasonable price, and pull thetrigger when in stops.

I've created a thread in the blogs, probably easier to view -

Thanks Tim
it is not going to matter what goes on in the markettoday. it is all about -fb-. they shouldn't even ringthe bell until 11am.  this is crazy!!!!    " WHEEEEEEEEP "

Yea, this is a bad day to put out news about your company, nobody cares lol


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