Is Facebook IPO hot or not?
Sources are spinning the issue wildly, giving conflicting reports about interest in the coming offering.
With just about every bank on Wall Street involved in this IPO, I suspect there is wild spinning on both sides of the issue.
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Bloomberg seems to have more credible information, reporting that institutional investors are worried about the company's growth prospects. Facebook says its advertising growth isn't matching user growth, Bloomberg reported, citing anonymous sources.
"Facebook is also telling analysts that sales may not meet their most optimistic projections," Bloomberg added.
Facebook and its selling stockholders are offering a little more than 337 million shares in its IPO, which is expected to price on May 17. The price range is $28 to $35 each, giving the company and its underwriters less than a week to drum up enthusiasm from major investors.
If there isn't that much interest, the price will end up closer to the bottom of the range, bringing less money to everyone involved.
So naturally, the theatrics are just getting started.
Enter Reuters, which has one anonymous source saying the IPO is already oversubscribed. CNBC reports the same thing. All of the concerns about growth and Facebook's problems in getting revenue from mobile are being cast aside, apparently. "Institutional investors have so far indicated demand for more shares than Facebook has available," Reuters reports.
The source even says Facebook may raise its price range beyond $35 if demand is healthy enough.
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As a famous executive who knew how to hype another circus once said, " a Suckerberg is born every minute."
Or something like that.
Hot or not, I'll pass for now.
I never joined facebook...
Saw how much time others wasted on it...
From things Ive read about facebook,
I Sure wouldnt
put Any trust or money in their hands...
For sale, originally priced at $35 dollars now only $28. No; how about $20, do I hear $20? OK, how about $1.25 and a coupon for one million free lifetime memberships?
the biggest scam ever for public investors- you must own a company to sell stock- does zuckerman own microsoft -
he must apply for a license to use the internet- as a public company- he must also put up money to covere every stock
offered- i did plus insurance - i never got a dime - black i guess
people hated on google when it came out the same way they are now doing to facebook you people will be in for a rude awakening lol I got 400 shares at ipo price and expect the stock to triple easily.
First off, google had solid profitability and were offering an even smaller number of shares and has a completely different business model from search engine to navigation to platform building.
Facebook is a fad. And it is already slowly diminishing. As soon as something comes out better, it's over. However, I do see stupid individuals like yourself falling over themselves to do the google thing. So by all means you probably will if you can actually get your hands on such shares. It will be pump and dump.
As for advertising businesses in general, if the economy continues to return to a dud. I expect most of the advertising money to dry up. Advertising doesn't work when no one can buy.
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The expected $3.36 billion offering from Citizens Financial Group won't come close to Alibaba's, but it will be an important one for the market.
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