#1.) The valuation is crazy.
Facebook is valued at $104 BILLION . . . that’s the biggest valuation ever for an American company making its Initial Public Offering.
#2.) The stock will be $38 . . . but not for you.
The final price for the stock in the IPO is $38 a share. But virtually no individual investors will be able to get their hands on the stock at $38. Only big firms and preferred investors will get that price. BUT . . . if you want Facebook stock, you CAN get it. After the IPO tomorrow when the shares start trading, you can buy it like stock in any other company. But you can expect the initial wave and massive hype to drive the price up.
#3.) It’s probably a bad investment for you.
With popular companies like Facebook, the share prices SKYROCKET. Virtually every investment expert will advise that you should wait until the hype dies down to buy a few shares.
#4.) There are going to be a LOT of new rich people.
The offering will create 1,000 brand new millionaires overnight. And MARK ZUCKERBERG will be worth $19 billion. But if the stock price surges, he might end up being worth TWICE that: $40 BILLION. That would instantly make him the second richest American, behind Bill Gates at $59 billion . . . and just ahead of Warren Buffett, at $39 billion.
ALSO: On Friday, Facebook went public and MARK ZUCKERBERG’S shares made him worth $19 BILLION. The next day, he and his girlfriend PRISCILLA CHAN shocked their family and friends with a surprise wedding. They had fewer than 100 people at their house, who all thought they were there to celebrate Priscilla’s med school graduation. Instead, it turned out to be their wedding.