Facebook IPO

Yesterday I met a very nice fellow in the waiting room of a doctor’s office. We immediately hit it off sharing the pleasure that it was our wives having outpatient surgery and not us.

Our conversation turned to Facebook and its much anticipated IPO. The big question we both had of course was how much the stock will cost? With nothing but time in the waiting room I started my simple research to justify a price. 

Facebook has 845 million users and it earned $1billion last year up from $606 million in 2010. So I guess that makes it a growth company.  So how much will the stock cost? A lot.  Google’s IPO was $85 and rose to $100 on the first day of trading. So how much is Google stock now? A lot.

So when can my bullish buddy trade options?  He’ll have to wait a few days. Once the stock starts trading there is an SEC approval process that takes about a week. Upon approval, option markets will be ready to offer unique opportunities to capitalize on your personal outlook for the future of Facebook stock..