Market Currents

As expected, Facebook (FB) prices at $38 (top of its range) and will trade Friday, with the...

Thursday, May 17, 2012, 4:22 PM ET
As expected, Facebook (FB) prices at $38 (top of its range) and will trade Friday, with the highest valuation of any company on record at IPO time. Trading in the stock will begin at 11 a.m. Eastern Time.

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This news story has 28 comments:

Ian Bezek Comments (1037)

Excellent, we will be able to say FB was the worst IPO disaster ever in terms of value destroyed within a few short years.

17 May 2012, 04:23 PM Reply Like

steven_h Comments (49)

I'm staying away. The sellers are climbing on board in hoards, making it stink of something smelly.

17 May 2012, 06:28 PM Reply Like

Tack Comments (9238)

Just a guess, but I wouldn't be surprised if it falls faster than those two lead balls Galileo dropped from the Leaning Tower of Pisa.

17 May 2012, 04:28 PM Reply Like

Wall Street Smart Comments (472)

I am sure after the pump FB will go to 80 tomorrow and have a marketcap of 220 bn. At a valuation of 220 bn facebook would be greater than the combined valuations of Goldman sachs, bank of America and Citigroup by a margin of 20 bn.

17 May 2012, 04:43 PM Reply Like

Rummeljordan Comments (455)

I hoping I am not the only one who thinks that is just sick. A social medium being the biggest thing we are talking about. We think the banks pose a risk to our financial health. How about a deeply rooted social issue.

18 May 2012, 10:04 AM Reply Like

Joeriii Comments (147)

Do you still think it'll go to 80?
FB is 1001% overpriced --'
cant wait till the bubble bursts

18 May 2012, 11:43 AM Reply Like

Rummeljordan Comments (455)

80. Probably not.

easy to say now though since I have been watching it.

18 May 2012, 11:52 AM Reply Like

runlong Comments (93)

I agree , the stock will be up 50% in no time Best buy some

17 May 2012, 05:01 PM Reply Like

SurfRat3 Comments (67)

The only way to be up 50% tomorrow is if you already have an allocation. If you're just jumping in when the bell rings you better hang on tight.

17 May 2012, 05:21 PM Reply Like

steven_h Comments (49)

Agreed! Advertising dollars are what drives this company , and unlike Google, their ads don't play well (low ctr) because people aren't on FB to actually search for products and services. Does anyone remember MySpace?

Unless you are on a trading desk, $38 was never within your grasp. This is the price the current holders have decided is a fair starting point to SELL their shares at. This the price that risk funds will START at in million blocks, and this will drive the price through the roof. If retail buyers can get in under $45-50 I'd be amazed. It might even be more at the open. When it peaks in a week or two (if you can time it (no easy task)) it would probably be a good short sell. If you like doing that sort of risk trading.

IMHO, I can't see Facebook being in the same stratosphere as Google

17 May 2012, 06:09 PM Reply Like

AGlass94 Comments (7)

I agree. It would be a good short sell. Just ride out a good profit and sell. Then watch it fall down because everyone else is selling.

18 May 2012, 12:47 AM Reply Like

Erick McKitterick Comments (858)

May be crazy overpriced but will defiantly be a tradable cash flow stock tomorrow. Liquid cash by end of day regardless of gains or losses.

17 May 2012, 07:27 PM Reply Like

Rupert Nicholson Comments (311)

100 P/E ratio. No thanks. Biggest overvaluation in history. People should really have more sense

17 May 2012, 07:45 PM Reply Like

lifelongfan07 Comments (9)

There are a lot of people here that have alerts for FB......2,153 people so far on this website. I say the stock will go up, then people will sell it for a quick profit......All of you people writing stuff about overvaluation. When it goes up.....you'll be wishing you had some. FB has been making a lot of money, what will change that? Zuckerberg may not be the smartest person, but he has surrounded himself with people that are very smart and he has the ambition and took a chance and look what he's done for himself.

17 May 2012, 10:43 PM Reply Like

Rupert Nicholson Comments (311)

They are not making a lot of money, their earnings are pitiful compared to their market cap. Hence they have one of the largest P/E ratio's in HISTORY.

18 May 2012, 08:19 AM Reply Like

Andrew Cherna Comments (187)

The problem with the market/world right now is that there are stocks like FB with a super high PE/ Market cap and getting pushed higher while at the same time there are a bunch of stocks that have higher, much more proven business models trading at low p.es.

18 May 2012, 09:44 AM Reply Like

Chris Lau Comments (1127)

QOTD from The Reformed Broker: "People debating (FB) offering at 38 or 39 while Europe has a full-on bank run, if only Vonnegut or Twain could witness this moment"

17 May 2012, 11:05 PM Reply Like

Manic Miner Comments (4)

it's already trading at $49 on the grey market. wouldn't be surprised to see $60+ today.

18 May 2012, 08:14 AM Reply Like

rjj1960 Comments (1027)

Sell all your AAPL,XOM,CVX,WMT,CAT,I... buy FB. Remember, the world would be lost without FB. Daily complaints,games,I don't like my boss, why didn't the coach pull the picture in the 9th inning..........yes the important things in life. Sell your companies that produce a product and buy one that has no assets.....good luck.

18 May 2012, 09:42 AM Reply Like

Retirefund Comments (750)

Could go as low as 25 or as high as 75. Crazy market. I'll buy at 25 if it goes that low. staying away otherwise. Mobile could kick this stock even lower in the next few years, and probably will.

18 May 2012, 10:33 AM Reply Like

Moon Kil Woong Comments (8811)

The market cap is a worry. A big one. It would have to suck all the ad money from all of Hollywood to justify its price.

18 May 2012, 11:01 AM Reply Like

Tack Comments (9238)

While I could not give a rat's patootie about FB's future, I am concerned that its likely share meltdown in coming days/weeks will, completely erroneously, be seen as some kind of economic-weakness indicator for the broader market, when, in fact, it's meaningless, except to indicate that sanity hasn't been jettisoned entirely.

18 May 2012, 11:06 AM Reply Like

Nolesince87 Comments (221)

I predict it breaks thru $50 easily on the open. Maybe drops, but then comes back and breaks $70... but falls apart and below it's opening price by end of day.

18 May 2012, 11:25 AM Reply Like

rjj1960 Comments (1027)

FYI all, 2 stocks I own, SU and CNQ, both have combined about 10 billion barrels of oil, not to mention the other 30 billion barrels of probable reserves. FB market cap is greater then those 2 combined. What a joke...

18 May 2012, 11:48 AM Reply Like