The good news is that I got in on the biggest Internet stock initial public offering (IPO) in history. The bad news, if you believe all of the analysts who have warned about overvaluation and low chances of future earnings growth, is that I bought Facebook stock.
I’m still thrilled. It’s extremely rare for a small potatoes investor like me to be able to get in on an IPO. eTrade sent an email early this morning alerting me that they have fulfilled my request to buy FB (as the social media giant will be known on NASDAQ when public trading begins) had been granted. I asked for 100 shares. I was able to buy 50 shares at $38.
My blog about hoping to get in on the upcoming initial public offering (IPO) of Facebook stock was selected for the 361st edition of the Carnival of Personal Finance.
I want in on the Facebook IPO — even though analysts point out that its revenues are leveling off, even though there are questions about its ability to grow future earnings to push stock prices higher, and even though a newcomer on the social media scene could knock it off its pedestal. What difference is there between buying Facebook stock and going to blackjack or poker tables in Las Vegas? It’s all a gamble to me.
Full disclosure: I’m one of the half billion daily active Facebook users. I was excited when I heard that Facebook Inc. was finally setting an estimated price range (of $28 to $35 a share) for the IPO on its stock. This is the most anticipated stock offering in years. I want a piece of it — even if it’s only a single share.
Everyday folks — mom and pop investors like me — rarely get a chance to buy stock at those low initial offering prices. I have a glimmer of shot through eTrade. Wish me luck. I’ll need it.