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?
Continue reading Poll Position: Is Facebook stock worth the asking price? »