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A Lesson Learned With IPOs: Be Careful

May 31, 2012, 2:30 pm EDT

This month, investors were taught a sharp lesson about initial public offerings.

While IPOs are a good thing for the market, they’re not always a good thing for investors. Often these offerings are met with insider selling that makes owning the stock dangerous for individual investors. So generally, I recommend staying on the sidelines when an initial offering rolls into town, no matter how hot the stock is.

This is especially true with the Facebook (NASDAQ:FB) IPO. The eight-year-old social-networking site produced the worst five-day return among the largest U.S. deals of the past decade. And its turbulent IPO is also attracting attention from the Senate Banking Committee and the House Financial Services Committee, as well as the Securities and Exchange Commission. Not exactly a confidence boost for shareholders. Read 

Tech CEOs Ponder the Facebook Debacle

May 31, 2012, 11:53 am EDT
Tech CEOs Ponder the Facebook Debacle

Yet again, the shares of Facebook (NASDAQ:FB) are down — off about 2.5% on Wednesday. Since coming public, the return has been about -26%.

So what’s the impact on the IPO market and tech? To get some insight on this, I had a chance to interview a variety of tech CEOs. Here’s what they had to say:

Mike Tuchen, CEO of Rapid7: Read 

Another Facebook IPO Victim: Kayak

May 30, 2012, 3:53 pm EDT
Another Facebook IPO Victim: Kayak

According to a report from Bloomberg, the travel search engine Kayak has delayed its public offering. Of course, the reason is the Facebook (NASDAQ:FB) disaster.

After all, the deal sucked $16 billion out of the financial system — and has generated substantial losses for institutions and retail investors. Is it any wonder that there’s little enthusiasm for consumer Internet deals now?

Interestingly enough, the lead banker on the Kayak deal is Morgan Stanley (NYSE:MS), which also handled the Facebook IPO. Read 

Facebook’s Valuation Reset Might Not Be Over

May 30, 2012, 2:26 pm EDT
Facebook’s Valuation Reset Might Not Be Over

Facebook (NASDAQ:FB) stock, which took a perilous fall Wednesday to continue its post-IPO plunge, basically were breaking even around midday Thursday.

After dropping nearly 36% since reaching opening-day highs around $45, might FB shares finally have found its footing? InvestorPlace‘s Rick Pendergraft thinks it’s possible; that the opening of FB options might have begun to establish some support levels.

However, to others, it still looks like Facebook stock could see further deterioration. Read 

Facebook: Another Billion-Dollar Buy?

May 29, 2012, 2:09 pm EDT
Facebook: Another Billion-Dollar Buy?

Until recent months, Facebook (NASDAQ:FB) primarily had made small acquisitions, with a focus on getting top-notch engineers. So when Facebook’s CEO and co-founder Mark Zuckerberg shelled out about $1 billion for Instagram, the deal at the time seemed more like an anomaly.

Now, it looks like it might have been the beginning of a strategy shift.

Currently, the buzz is that Facebook might shell out another billion dollars for Opera Software. Founded in 1994, Opera develops browsers for desktops and mobile devices. However, the company is still a tiny player, with less than 2% of global market share, and it competes against giants like Microsoft‘s (NASDAQ:MSFT) Internet Explorer, Google‘s (NASDAQ:GOOG) Chrome and Apple‘s (NASDAQ:AAPL) Safari. Read 

Facebook Launches an … Instagram Rival?

May 25, 2012, 2:10 pm EDT
Facebook Launches an … Instagram Rival?

A couple weeks before the Facebook (NASDAQ:FB) IPO, CEO and co-founder Mark Zuckerberg shelled out $1 billion for Instagram. But now there’s another interesting development: The company has launched its own knock-off of the popular photo-sharing site.

It’s called Camera and is now available from Apple’s (NASDAQ:AAPL) app store. With a couple taps, users can easily edit and share photos. And like Instagram, Camera has filters to change the style and colors of pictures.

OK, so why did Zuckerberg buy Instagram? It may really be a defensive move. Why allow a rival like Twitter, Microsoft (NASDAQ:MSFT) or even Apple buy it? Buying Instagram should allow Facebook to protect is hugely important photo-sharing franchise, which averages about 300 million uploads per day. Read 

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