Is Facebook IPO hot or not?

Sources are spinning the issue wildly, giving conflicting reports about interest in the coming offering.

By Kim Peterson May 11, 2012 2:42PM
The pending Facebook IPO is either already oversubscribed or seeing weak demand. The contradictory information came Friday from Bloomberg and Reuters.

With just about every bank on Wall Street involved in this IPO, I suspect there is wild spinning on both sides of the issue.

Post continues below.
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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Tags: FBIPO
18Comments
May 11, 2012 3:57PM
May 12, 2012 10:16PM
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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.

May 11, 2012 6:31PM
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   Investors, both big and small, are you going to be in for a rude awakening when the exec's take the money and run. They have pulled off the ultimate heist and it's just a matter of days until the world see's at who's expense.  
May 13, 2012 7:28AM
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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...

May 12, 2012 9:58PM
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Facebook has caused lots of problems for and at my place of employment. There are privacy issues. People talk about how facebook does not monitor what is posted, the explicit language that is used. Most people I talk to are not interested in what facebook does they will use it, be on it as it is free! But I don't see a growth. I see more people leaving then joining. These analyst are just that analyst to get a paycheck and be on these corporate good sides. Boost their images in the media. When in reality, they are not talking with or to the actual people who use facebook and what they actually use it for. To keep in touch, find and check up on long lost friends they are no longer friends with, ex's, gossip, scandals, and just being nosy in other peoples lives that they choose to make public on facebook.
May 11, 2012 6:49PM
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Let the bookrunners hold their blocks of shares and retail investors use your common sense.  Many stories of frustration and departures from FB.  At some point,  it will be overtaken by another enterprise like MYBOOK or FACESAVE or whatever...
May 13, 2012 2:44PM
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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?

 

May 14, 2012 3:30AM
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Smile Your emperor is waiting for his next billions for what?
May 14, 2012 1:33PM
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I am boycotting Facebook because of the American Denouncing billionair owners. Take your tax savings and dont come back... Please tell me a new social site like facebook is on the horizon..
May 12, 2012 9:27PM
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Hot or not?  Jeez...  I don't know...  If only there was some way it could be postponed and hyped for a while I make up my mind.
May 13, 2012 2:52PM
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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

 

May 13, 2012 12:41PM
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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.

May 14, 2012 4:32PM
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NOT!!!  I really hope he loses his butt on this!!  Would serve him right!!  Self-righteous SOB!!
May 13, 2012 12:14PM
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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
May 13, 2012 1:29PM
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In the long run, tech stocks run by tech-savvy owner/visionaries make money for investors.  Imagine Facebook 10 years from now and ask yourself if Zuckerberg and his team will grow and invent for mass population sales during that time.  Of course he will.  I'm in.
May 11, 2012 4:21PM
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who cares, the rich will always get richer and the poor will get poorer
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