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Tag Archive: Facebook IPO


WhatsApp Facebook’s Deal

 Last weekend I have been reading lot of literature and news about the deal between Facebook and Whatsapp. Most of the people bloghave challenged it on the Value and Pricing Perspectives. Have taken some extracted thoughts from prof Aswath Damodaran and they looks very interesting:

Following in the footsteps of my favorite baseball general manager, Billy Beane, its time to play some Moneyball, where we let the data drive our actions, rather than our intellects. Here is what I take out of these numbers:

  1. If you are an investor, stop trying to explain price movements on social media companies, using traditional metrics – revenues, operating margins and risk. You will only drive yourself into frenzy. Continue reading
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I do not know how people can be so insane about Candy crush that Candy Crush Saga, made its pitch to potential investors for its bloginitial public offering couple of days back, revealing in a U.S. Securities and Exchange Commission filing just how good its business has been. By the way I don’t like the Candy crush invite on Facebook.

Every month, millions of people download King’s free apps, only to pay up for little digital trinkets that help them make progress in its games. People managing huge investment funds are probably just as hooked as the rest of us on those blinking jelly beans.

The way people changing taste social network and IT gaming companies en-cashing the opportunities, Facebook and Whats-app is a different story in line would put up with details soon.  Continue reading

Matt Levine through the deal maker did lovely story of Facebook IPO on Nasdaq . The First few pages are worth a read . imagesHere are the details from SEC account

In a typical IPO on NASDAQ, shares of the issuer are sold by the IPO’s underwriters to participating purchasers at approximately midnight and secondary market trading begins later that morning. Secondary trading begins after a designated period – called the ‘Display Only Period’ or ‘DOP’ – during which members can specify the price and quantity of shares that they are willing to buy or sell (along with various other order characteristics), and can also cancel and/or replace previous orders. The DOP usually lasts 15 minutes… Continue reading

I have done almost a dozen post over it and tried to reveal the concept of IPO and what does indicates. One of the true indication of the IPO’s is that “It’s probably overpriced.” that has always been true since inception. Facebook IPO is another chapter in that series.

The objective of an IPO is meant to fund the company and reward its founders, and make money for the people who are handling the deal. If you’re an average investor, you’re not getting
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