BILLIONAIRES CASHING OUT & FACEBOOK VIDEO ROADSHOW
There have also been a number of stories (including those at Forbes) about some early investors in Facebook selling at the IPO. Perhaps CEO Mark Zuckeberg’s sales are just tax motivated as many of the reports contend — but no one would blame him for taking some money off the table. (Technology can be harsh and fickle — look at Yahoo! now — the shadow of what they once were in the tech sector).
Absent from this list of insiders/early birds who are selling is 27-year old billionaire Dustin Moskovitz (one of the original four Facebook founders, and its first Chief Technology Officer), and Sean Parker, early FB president and the guy who brought Zuckerberg to his first real investors. Do they really see more value by holding on? Do these guys believe that Facebook will easily grow into its rich IPO valuation? Make sure you check out the video roadshow that Facebook put together to convince us all to become shareholders… Interesting to say the least.
FACEBOOK BINARY OPTIONS: ALREADY TRADING
So here’s an article on binary options already being traded on Facebook. Unlike traditional options, these call (bullish) and put (bearish) options on Facebook’s market capitalization at the end of the first day of trading require the stock to pass certain milestones for either a whopping 70% gain or an 85% loss. Anyoptions is one of the places where these trade in $25 increments up to a maximum of $1000 per strike (40 count).
Looking at their site, buyers of these Facebook binary options CALLS choose the Facebook market valuation above $125B, $131B, $137B, $144B, $151B, or $158B after the first day of trading and return between 70% and 300% over the price. For binary options buyers of PUTS the FB valuation must be below $104B, $97B, $91B, $84B, $72B USD on opening day for the same return in the other direction.
Let’s do some math based on the $28 to $35 dollar price set for the Facebook IPO, and the reported $77B to $96B USD valuation implied for the company. What investors must consider is that based on the recent numbers released for the IPO trading range these binary option calls require Facebook to close at $45 to $57 USD by the end of the first trading day. Put buyers in these binary options need FB stock to close between $37 and $26 for their maximum payout. You have to decide will the IPO stall on day one, or will it mark its first trading day with a double? These options also make outright buying the underlying stock look not as risky — at least you’ll own something in June!
- What is an IPO?
- Other Pre-IPO Considerations about Facebook’s Stock: At…
- Thinking about Facebook IPO: What are some of the Risks?
- Forget the Patent Lawsuit: Facebook Should Just Buy Yahoo
- Why Go Public?: Understanding a Facebook IPO
- Facebook’s IPO Announcement Imminent? LinkedIn…
- Should I Buy the Facebook IPO: Invest in Facebook 2012
Tags401K AAPL acquisitions AIBYY alexa.com Amazon AMT AMZN Arab spring BIDU BP BX CAT CCI CMCSA CNBC Columbia DIS Eduardo Saverin ETF Facebook Facebook IPO Fast Money FB FDX GOOG Gowalla GS halted Harvard HNW Howard Lindzon HubPages hulu IDCC inactive accounts initial public offering Instagram institutional investors IPO itunes Ivy League John Neff Kevin Systrom KFT lawsuit lead underwriter LNKD Lottery Lucy market cap Mark Zuckerberg Matt Taibbi Media and Communications Fund Menlo Park millionaires MMI Morningstar MS MSFT NDAQ nerds NFLX NYSE NYX Occupy Wall Street open mobile social P patents popular chicks PRMTX proxy revenues risk Rolling Stone S-1 secondary market Sharespost SlashGear Social Enterprise Stanford Steve Ballmer Steve Grasso stock options StockTwits Sun T T. Rowe Price ticker symbol Timeline TWC Twitter valuation vampire squid VOD VZ Yahoo Yale YHOO ZNGA
United States 80 % 80 % Canada 5 % 5 % United Kingdom 2 % 2 % India 1 % 1 % Australia 1 % 1 % Singapore 1 % 1 % Malaysia 1 % 0 % Netherlands 0 % 0 % Philippines 0 % 0 %
- Will Facebook Survive the Coming Years?
- The Facebook Issue on Wall Street Reveals the Dark Side of Stock Flotation
- Beyond IPO: Implications of a Public Facebook
- 5 Business Lessons We Can Learn From Mark Zuckerberg
- Steve Wozniak, Tech Icon and Apple Co-Founder Says He’d Buy Facebook at Nearly Any Price
- Facebook’s IPO Price Range and the Roadshow Video, Billionaires Cashing Out, and the Drama of Binary Options
- 3 Things You Can Learn from Mark Zuckerberg
- Welcome to our new site SHOULD I BUY FACEBOOK IPO: Thanks for visiting our discussion about what should be the biggest IPO of 2012, and of the last few years. Is the highly anticipated initial public offering of Facebook a great opportunity for individual investors, or is it a trap of overvaluation? Please enjoy the content here, feel free to share and comment, but then please do your own individual research and consult your own advisors before you commit any risk capital to any investment, including an IPO. Please sign up for our email list!