Originally Posted by SkillzKillz
Since the P/E ratio would be so high, you would expect investors to buying on growth. However, I feel like this is more about brand reputation than anything. If these rumors are true expect the stock to pullback hard after the IPO.
Zuckerberg owns 24% of Facebook's shares.
Who would have guessed that U2's lead singer, Bono
, owns 1.5% of Facebook?Source
Anyone count say "expect a pullback after IPO". Eventually all stocks have a big drop or rise in pricing - the important part is, when does that happen? If Facebook goes up 15-20% before going down 5%, that's pretty decent. On the other hand - it'd be a bad idea to chase it down (or to hold it on the way down). It's pretty common for stocks to stay overpriced for weeks, months. Look at Netflix - it took a hugely stupid move by the company last year to bring the stock price back to a reasonable level. But the upside is huge, Facebook still can find ways to better monetize their business, expand etc. Regardless, inexperienced traders will get burnt on this stock if they're trading short-term.
Originally Posted by MGX1016
I really want to buy 3-4 shares and resell them in a week. I haven't gotten any solid advice on how to actually do it(partially because I'm not a multi million dollar morgan Stanly investor)
It's really not that hard to get started. Just as an example you could use a really terrible stock broker like eTrade, spend about $8 to do a trade ( = $16 lost round-trip), and put a few thousand on the stock. You'd need about a 0.6% gain to break even on $3k investment. If you just want to gamble and make some money (or more likely, lose a lot), you could read up on options trading. I think the best idea would be to get some shares and plan on holding them long term. Making a quick buck on Facebook stocks isn't a guarantee (and, look at stocks like Apple, nobody thought it'd be >$400 2 years ago, and nobody got that huge return on investment over holding for a week or 2).