Apr 25, 2012, 2:04 pm EDT
It’s hard to turn $10,000 into $1 million, but if you’re looking, one of the best places to find such an opportunity is the IPO market, where investors can get a chance to buy a company’s stock in its early years.
It takes time — maybe a decade or more — but these magic multipliers happen. And besides, aren’t hundred-fold returns worth the wait?
Many optimistic investors hope Facebook might be the next 100x darling. Whether it will remains to be seen, but we might get a better idea by examining other former IPO breakouts. Read
Apr 24, 2012, 3:37 pm EDT
The buzz was that Facebook would come public on May 17. But according to a report from CNBC’s Kate Kelly — who has strong contacts with Wall Street underwriters — it now looks like the IPO could be delayed to early June. However, with the Memorial holiday being on May 28, the deal may actually be launched in mid-June instead.
No doubt, Facebook has been busy over the past couple weeks. On April 9, CEO Mark Zuckerberg surprised nearly everyone (including his own board of directors) when he agreed to pay $1 billion for Instagram, and just yesterday Facebook shelled out $550 million for patents that Microsoft (NASDAQ:MSFT) recently bought from AOL (NYSE:AOL). Such transactions can get complicated and may result in questions and comments from the Securities & Exchange Commission that Facebook would have to respond to.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “The Complete M&A Handbook”, “All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities. Read
Apr 24, 2012, 1:46 pm EDT
Facebook’s IPO will soon be upon us, and even though the company reported a lackluster first quarter yesterday, the deal is still likely to be huge. The buzz is that Facebook will raise $10 billion at a $100 billion valuation.
So how can you get shares?
Investors have been loading up on Facebook stock for the past few years through secondary markets such as SharesPost and SecondMarket. But Facebook has suspended trading in these markets. Read
Apr 23, 2012, 4:19 pm EDT
Facebook released its latest S-1 filing Monday, and it was a bit of a downer.
The company actually showed a slowdown in business on a sequential basis, with declines in first-quarter earnings and revenues. Net income fell from $302 million last quarter to $205 million this quarter, and its $1.06 billion in revenues were down from the previous period’s $1.13 billion.
Year-over-year, revenues actually were up about 45%, though not as strong as December’s 54% YOY growth, and net income actually declined about 12%. The S-1 does say that the first quarter usually is low because of seasonality, as there’s not as much advertising as in other quarters. Read
Apr 23, 2012, 2:49 pm EDT
At 27, Facebook’s Mark Zuckerberg is about to become one of the youngest CEOs of a publicly traded company. The feat is even more impressive considering that when Facebook pulls off its IPO in a few weeks, his company could be valued at around $100 billion.
Those accomplishments might make the following question sound crazy, but it still warrants asking: Does Mark Zuckerberg have the right stuff to helm a publicly traded company?
In terms of pure age, there’s several examples of young, public CEOs that have performed admirably in the tech sector. Dell’s (NASDAQ:DELL) Michael Dell was only 23 when his company came public; Microsoft’s (NASDAQ:MSFT) Bill Gates was 29. Both went on to create franchise companies and made shareholders a bundle. Read
Apr 23, 2012, 10:35 am EDT
This week, two tech IPOs are expected to hit the market. No doubt, the space has been hot. Last week the public offering of Splunk (NASDAQ:SPLK) doubled, and there were strong performances by Infoblox (NYSE:BLOX ) and Proofpoint (NASDAQ:PFPT).
Do not expect the same kind of action from this week’s tech deals.
Here’s a look: Read