You have to love America, and the creation of wealth that is possible. I received the 50 FaceBook – FB IPO shares I requested through ETrade. The shares were priced at $38. They opened at $42.49, and are currently trading at (FB quote) EDIT… SOLD THIS DOG ON DAY 1 WHEN IT WAS BEING PROPPED AT THE IPO PRICE OF 38.
Will FB be different than recent Internet IPO’s? Recent offerings of LinkedIn – LNKD (priced at $45 May 2011. Rose as high as $122.70 the first day of trading, and is currently trading at $105), or Zynga -ZNGA (priced at $10 in December 2011. Currently down to $8.50), a complete failure, or Groupon – GRPN (priced at $20 last November 2011. Currently at $12.20) another failure. Most IPO’s have popped on average around 40% initially, but it’s been a wheelbarrow full of watermelons running loose down the hill since. Where they smash has not been pretty.
Will I hold these FaceBook IPO shares? For a while. The company is making $4 billion off ads currently. They have such a huge database of users that, if they come up with some creative ways to sell to that crowd, they will succeed. Look at what Apple has done with ITunes. This will be interesting to watch.