Facebook IPO Set Facebook IPO Set To Be Largest Offering Ever, Prices at $38 – Will They Buy?
Facebook is already getting “liked” by investors. The social media giant was set to open between $34-$38 per share and priced at the highest end of the range at $38. The Facebook initial public offering pricing was announced moments after the market today and the price tag per share is set to bring in an additional $18 billion for the largest internet public offering ever.
Small investors have been advised to steer clear from purchasing shares of Facebook tomorrow because of recent IPOs in the social media space. Facebook could be a better bargain for the average investor a few months from now but eventually, if all the hype is true, a few months won’t matter ‘a la Google’. It may be a long-term horizon play, but Facebook is keeping people interested in the social media sector in ways never thought possible just a few years ago.
Rarely do a company have a hit movie and hype surrounding it before they go public – if ever. Facebook’s initial public offering should be interesting and associated social media companies or mobile plays could get more attention if Mark Zuckerberg can lead the company he created in a dorm room at Harvard to further success quickly.
The odds are, 900 plus million users can’t be wrong. Consumers have a strong desire to keep up with current events and obtain news online or via mobile devices using social media, this allows Facebook to target advertising based on profile information as well as recent activity. Facebook will also supplement earnings with games from companies like Zynga to a large network and can leverage its user base with unique content in the future. Facebook may have only just begun.