rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Experts caution on Facebook IPO frenzy

Experts caution on Facebook IPO frenzy

Last updated on: May 18, 2012 16:29 IST

Experts caution on Facebook IPO frenzy

     Next

Next
Seema Hakhu Kachru in Houston

As the shares of social networking giant Facebook begin trading on the NASDAQ exchange today, experts believe that the stock is overpriced at $38 apiece and one must wait for now to invest in the firm.

NYU Stern School of Business Finance ex-Professor Kenneth Froewiss said that adding Facebook to a portfolio early on is risky for experienced pros and investment amateurs alike.



Image: Facebook founder and CEO Mark Zuckerberg fist bumps a student at Harvard University in Cambridge, Massachusetts.
Photographs: Brian Snyder/Reuters.
Tags:

     Next

Experts caution on Facebook IPO frenzy

Prev     Next
Prev

Next

"Even for those individuals with above-average net worth, purchasing shares at an IPO, especially a 'hot' one that has been widely hyped, is rarely a good idea," Froewiss said.

He said it is like playing a lottery. "Might someone on occasion reap a tremendous windfall by doing so? Yes, but then again, on occasion someone wins the lottery. That does not make the lottery a great investment in general," he added.

Click NEXT to read more...



Image: Zuckerberg's desk.
Photographs: Reuters.

Prev     Next

Experts caution on Facebook IPO frenzy

Prev     Next
Prev

Next

Facebook made history by launching one of the largest initial public offerings for a technology firm, aiming to raise $16 billion that pegs the value of the world's most popular social networking site at $104 billion.

Click NEXT to read more...



Image: US President Barack Obama attends a town-hall meeting at Facebook headquarters with CEO Mark Zuckerberg in Palo Alto.
Photographs: Jim Young/Reuters.
Tags:

Prev     Next

Experts caution on Facebook IPO frenzy

Prev     Next
Prev

Next

The shares would begin trading on the NASDAQ exchange today under the symbol 'FB'. The public offer is expected to close on May 22.

At $16 billion, the size of Facebook's IPO is the third-largest for a US company, with the largest being the Visa IPO, which raised $17.9 billion in 2008, according to Renaissance Capital.

Click NEXT to read more...


Image: An employee works in the international user operations area at the new headquarters of Facebook in Menlo Park, California.
Photographs: Robert Galbraith/Reuters.
Tags:

Prev     Next

Experts caution on Facebook IPO frenzy

Prev     More
Prev

More

The current excitement about the company's stock market debut does not guarantee long-term interest or success, experts said.

"In my experience this stock and its IPO has seen more enthusiasm than any other I have seen over my 40 years of investment experience," said Lewis Altfest, CEO of NYC-based Altfest Personal Wealth Management.



Image: Mark Zuckerberg.
Photographs: Reuters.

Prev     More
© Copyright 2013 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.