Facebook goes public today, listing shares on Nasdaq at $38 apiece; if you want to buy, trading of stock listed as “FB” commences at 11 a.m.
So, do you? Do you want to buy Facebook stock at that price?
On one hand, there is precedent for highly anticipated tech listings that soared and have not (to date) flamed out. Google of course comes to mind: The search-engine company went public in August 2004 at $85, more than doubled in price by year’s end, and has been trading lately in the $600s — more than seven times its IPO price.
Of course, Google has a way to make money, and lots of it. Facebook? Well, the numbers would indicate it’s at least as good a moneymaker as Google was circa 2004. But there was ominous news this week, when GM said it was pulling its paid advertisements on Facebook because it didn’t think they were effective.
At $38 a share, for a market cap of $100 billion-plus, would you buy Facebook stock?
Total Voters: 70
And $38/share would put Facebook’s market capitalization at more than $100 billion — far bigger than some well-established brands in the tech industry and U.S. business at large. In fact, it probably would make Facebook one of America’s 25 largest publicly traded companies.
Now, I’m no investing pro: I don’t even buy individual stocks, for reasons of a) journalistic ethics and b) the belief I’m not going to outsmart the professionals. So, don’t make any decisions based on this little overview.
Do, however, tell us: Do you think Facebook is worth that kind of money? Would you invest in it at the asking price? That’s this week’s Poll Position. Answer in the nearby poll and the comments thread below.
– By Kyle Wingfield