Facebook IPO Prices At $38/Share

Tyler Durden's picture

Finally, we can move on:


Now, all that Facebook needs are those elusive +/-25 billion users to "grow" into its "valuation." We only have four outstanding questions:

  1. What is Ben Bernanke's IPO allocation?
  2. Does the CIA use tax or cost basis accounting?
  3. When do the puts start trading?
  4. What is the fair value of Like relative to intrinsics and is Bruno Iksil long or short it?

Finally, from the inimmitable Andy Borowitz:

A Letter from Mark Zuckerberg

About Facebook’s IPO

MENLO PARK, CA (The Borowitz Report) – On the eve of Facebook’s IPO, Founder and CEO Mark Zuckerberg published the following letter to potential investors:

Dear Potential Investor:

For years, you’ve wasted your time on Facebook.  Now here’s your chance to waste your money on it, too.

Tomorrow is Facebook’s IPO, and I know what some of you are thinking.  How will Facebook be any different from the dot-com bubble of the early 2000’s?

For one thing, those bad dot-com stocks were all speculation and hype, and weren’t based on real businesses.  Facebook, on the other hand, is based on a solid foundation of angry birds and imaginary sheep.

Second, Facebook is the most successful social network in the world, enabling millions to share information of no interest with people they barely know.

Third, every time someone clicks on a Facebook ad, Facebook makes money.  And while no one has ever done this on purpose, millions have done it by mistake while drunk.  We totally stole this idea from iTunes.

Finally, if you invest in Facebook, you’ll be far from alone.  As a result of using Facebook for the past few years, over 900 million people in the world have suffered mild to moderate brain damage, impairing their ability to make reasoned judgments.  These will be your fellow Facebook investors.

With your help, if all goes as planned tomorrow, Facebook’s IPO will net $100 billion.  To put that number in context, it would take JP Morgan four or five trades to lose that much money.

One last thing: what will, I, Mark Zuckerberg, do with the $18 billion I’m expected to earn from Facebook’s IPO?  Well, I’m considering buying Greece, but that would still leave me with $18 billion.  LOL.

Friend me,


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in4mayshun's picture

Someone is going to become rich shorting this POS.

vast-dom's picture

FuckBook will shit fan at $31 close tomorrow -- yes i am calling this turd!

Ahmeexnal's picture

Facebook IPO??? more like..failbook IPO

vast-dom's picture


HeNateMe's picture

Zerohedge Comments, created by Tyler Durden for Douchebags who make categorical Douchebaggy statements.

MillionDollarBonus_'s picture

My first price target is $100, followed by $200 shortly after. Buy while you can as this buying window will NOT last for long. FB is going to be the next AAPL, but not everybody will be smart enough to buy now while it's still cheap.

CharlieSDT's picture

Last year Facebook had $3.8 billion in revenue, not profit, just revenue. We don’t know how profitable Facebook is because it’s a private company. Let’s say Facebook’s executive team is absolutely stellar and they have even better margins than Google with 27.5% (Google achieved 25.7% profit margin in 2011). That would mean they earned $1.045 billion in profit which would imply a P/E ratio of 95.7 and a return of only a little over 1% on your investment.  That's a pretty bad investment which does not begin to keep pace with inflation.


But of course on Friday, there will be a mass IPO hysteria and all sorts of retards will bid the stock up to ridiculous levels, and yes, Facebook will reach and probably exceed that 100 billion valuation. Then I will wait impatiently for a week or two for people to write some puts. On a long enough timeline, I guarantee you, Facebook is a losing investment and I can’t wait to take the other side of that bet.



Dr. Richard Head's picture

P/E ratios?  What do you think this is?  A real market?  pfssst

AlaricBalth's picture

Options start trading May 29. Plenty of time to raise cash for the Put of your life. Hopefully it trades LEAPS. I figure the July 2014 35's puts will be well in the money by then.

smlbizman's picture

add all the hype of all the superbowls up and it still would not add up to how much this thing has been hyped...

hedgeless_horseman's picture



5.  When does the lock-up period end?

The Big Ching-aso's picture



The last sucker, I mean investor, who buys this from a really really bright seller please turn off the IPad.

tallen's picture

Cramer: Facebook Could Hit $70 On First Day


For shits and giggles.

The Big Ching-aso's picture



I bet if they ever do a Faceporn IPO they'd make some really obscene profits.

Stuck on Zero's picture

At this point we need some Chinese accounting firm to do an analysis of Facebook and publicly announce the company is only worth $4 a share.  Why not?  We do it to their IPOs.

Blizzard_Esq's picture

1. Facebook took $3.7 billion in revenue last year and producing $668 million in net profit off that income

 2. 44 percent of Facebook’s revenue last year (or about $1.63 billion) came from outside the United States

3. Facebook's revenue per  USA user (157 million users) is about $13.37 in 2011. 

4. Facebook's revenue per Foreign user (733 million users) is about $2.21 in 2011. 

5. Facebook's PROFIT per user in total per year is about $0.75. 

6. Google produced an estimated $24 per user in 2011.

7. = Facebook has a long way to go in foreign markets and even if they reach parity with US market users they are not going to be make a lot of money.....tops is nowhere near the Apple and Google horde. 


BorisSDT's picture

Where did you get these numbers?

Blizzard_Esq's picture

Most of it came from: 

http://www.digitaltrends.com/social-media/inside-facebook-what-sec-documents-reveal-about-the-social-networking-monolith/ which itself cites the SEC S-1 Document Facebook filed. 


1. Page 50: the profit per user in USA vs foreign was just extrapolating the revenue and dividing by user counts.

"In 2011, we generated approximately 56% of our revenue from advertisers and Platform developers based in the United States" -- Ergo 44% overseas.

The Prospectus Summary states: "We had 845 million MAUs as of December 31, 2011"

Recently Google's DoubleClick estimates 890 million users.


BorisSDT's picture

Great thanks.  So how did they get from $677 million there to the $1 billion net income for 2011 they're now claiming?

Buck Johnson's picture

What I hate the most is the fact that CNBC was pumping this stock all day let alone all week.  This is outrageous, they didn't put that much power into other stocks.  I feel a 31 dollar a share day.

Problem Is's picture

If you have not figured out by now CNBC is full of fiucktards, liars and propagandists and shut the fucking TeeVee off...

I can't help you...

pq7's picture

"$1 billion was Facebook’s net income (read: profit) in 2011. This is pretty solid given growth from previous years: $229 million in 2009 and $606 million in 2010."


source: http://www.zdnet.com/blog/facebook/facebook-ipo-final-numbers/13257

jus_lite_reading's picture

My first price target is $2000, followed by $3000 shortly after...

Oooops. Sorry, I was talking about gold...

All I will say about Farcebook is... compare GOOGLE's valuation and revenues and then look at Farcebook...

Like Tyler said, unless every man woman in child in India, China, Africa, Mars and Jupiter start "signing up" this price is absurd as LNKD, JCP, NFLX and YELP's business models...

Matt's picture

I just think the 99X P/E is a bit rich. The company itself is actually making profits; with Dot Com there were companies that didn't even have revenues, let alone profits, going for IPO. I am sure it will settle down to a much lower share price within a few months, barring the requested $4 trillion QE3.

ebworthen's picture

MillionDollarBonus said:

"FB is going to be the next AAPL"









The Alarmist's picture

Does GM also fit in with this rogues gallery?

Spastica Rex's picture

I think they're big in China.

James-Morrison's picture

I've traded AAPL after I owned a few apple products.

I've traded GOOG and I use it daily. 

I don't use Facebook.   I kicked the tires but it seems like a MIP burner to me.  I'll pass...


exartizo's picture

Ummm... you look a little bit like Jamie Dimon on steroids (or crack).

IMA5U's picture

learn to use it


douchebagz get laid

in4mayshun's picture

Dividends will be paid in "Likes" and "friend requests."

derek_vineyard's picture

somehow i get spam from a company called 'fuckbook'  (only spam i look at)

when's their IPO?

in4mayshun's picture

Now those friend requests would be worth something...

Dr. Richard Head's picture

I would buy into the redtube or youporn ipo in a heartbeat.

sgt_doom's picture


Narus is developing a new technology that sleuths through billions of pieces of data on social networks and Internet services and connects the dots.

The new program, code-named Hone, is designed to give intelligence and law enforcement agencies a leg up on criminals who are now operating anonymously on the Internet.







LouisDega's picture

Don't feel bad. I get spam for Ron Jeremys patented peter pumper 

_ConanTheLibertarian_'s picture

Hey, you're Dutch right? Then you'll remember World Online which was also around the stock market top.

Manthong's picture

And tulips might be a fitting analog.

ZeroPower's picture

Not before hitting $60 at least.

It'll finally open for secondary trading at $40+, then will explode higher based on shitty retail orders.

Revisit this post tomorrow, just watch. The big boys are supporting this to no-end and will be scooping up shares the second it gets close to the offered price..

onelight's picture

I guess that means the markets find a bottom tomorrow...thank God for fundamentals 


homersimpson's picture

Put me down for $25, and low as $19. 421 million shares? $25/share still puts them at a valuation close to $100 billion if they sell all 421 shares (which they won't at $38).

Seize Mars's picture

Oh it's shit alright. Like BATS - shit.

I give it 100 milliseconds beofre it hits actual zero.

CClarity's picture

An awful lot of you don't get it.  FB is neither a fad nor a joke.  It is destructing social and the genie is out of the bottle.  But, you'll see for yourselves soon enough.  If you're not using it regularly you just won't get it.  GM's problem.  Ford doesn't have the same problem.  The point is targeting via data aggregation, not pablum adverts for any 'ol eyeballs.

Discussion to be continued.


derek_vineyard's picture

vast--fuck book is a name already taken by another company

google it

ACP's picture

Depends on whether or not they get a multi-billion dollar contract with the NSA...

onelight's picture

well, it seems like they ARE a multi-billion dollar contract with the NSA...