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Among giant U.S. IPOs of the last 10 years, Facebook (FB), which is now down 16% from its $38...

  • Saturday, May 26, 2012, 11:25 AM ET
    Among giant U.S. IPOs of the last 10 years, Facebook (FB), which is now down 16% from its $38 offering price, has posted the worst performance, according to Bloomberg's data. Of course, many pre-IPO investors are also underwater: a SecondMarket chart shows Facebook reached current levels in Feb. '11, and largely remained above them until this week. Options trading begins on Tuesday, and could bring additional volatility.
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This news story has 6 comments:

  •  
    This whole thing was a clusterfrack. Zuckerberg shopped around for the underwriter who would give him the highest valuation, Morgan Stanley pumped it up as best they could (at least for the first day), and relevant analyst information was withheld from investors improperly.

    Can't wait for Tuesday -- looking forward to buying some puts as a speculative trade. :)
    26 May 2012, 11:39 AM Reply Like
  •  
    Let the games begin :)
    26 May 2012, 12:04 PM Reply Like
  •  
    America's wealthy through their proxy (investment banks) schemed to transfer money from middle-class to the the top 1%, classic class warfare.
    26 May 2012, 12:39 PM Reply Like
  •  
    Unfortunately some correction already happened, and my broker limited the amout of shares I could short. FB, I'll use options to extract ever dime out of that over hyped clownshow that I can, esp with all of the recent lawsuits regarding the IPO and settlements being given out left and right from several brokers...I really dont see a bunch of good news coming out here.

    Plan for FB: Short via put-spread or iron condor/reverse iron condor based on potential large move
    26 May 2012, 01:41 PM Reply Like
  •  
    @$34 FB sells at x46 times 2013 projected earnings.
    Google currently exchanges @ x12 times and Apple @ x10.8 times.
    I won't touch FB until it hits $8 or $9.
    26 May 2012, 06:09 PM Reply Like
  •  
    It was almost funny how much pumping was going on in FB and at the same time it was losing air out the back end with the GM announcement and other news.

    What will be interesting will be what happens with MS notifying some big clients ahead of others, assuming reports are true.

    I would add that it didnt take much intelligence to back off and let the greedy buy into FB. They get what they deserve!
    26 May 2012, 06:55 PM Reply Like
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