Facebook IPO Price Announced. 38 Dollars a share. Could it go to 67 Dollars tomorrow?

Facebook Nasdaq IPO opens tomorrow and so tonight they've decided on the price per share.
38 Dollars. I predicted 37 Dollars (not bad, eh), which will bring in 16 billion. 
It is the biggest Internet IPO in history.


Bono will make about 176m Dollars on opening.


Remember they started with an indicative pricing range of 28-35 Dollars. On Wednesday they revised it up to 34 - 38 dollars. A typical play to show the market that the shares were so well demanded, they "had to" push up the price. And of course, the demand is clearly there.


At that price this is going to shoot on Day one 30%+ and you'll see some selling day one as people flip it for a short term profit.


My blog of May 5 said and right now, I'm standing over it 100%. Now that I know the price, convinces me further......so here's part of  that blog again if it helps you (but you can read it in full on the right hand side):


Facebook IPO. Could the Share open at 37 Dollars and go to 67 Dollars? 

1. Share Price will open at 37 Dollars (higher than the indicative band indicating early interest to the market....and, of course (!), giving early institutional investors an immediate profit).

2. On the day it floats, it will open to huge demand (very bullish) and over the first 2/3 days, it will then bounce and climb to circa 67 dollars (60 usd+ anyway). A 30% gain on the first day would bring it to 48 usd alone.

No one is saying anything like that (in fact, good traders tell me that I'm mad...we'll see) but I know Facebook will go past the magically 100 billion usd valuation mark easily (1st day) and well past it. They'll want that to get headlines.

3. It will then stabilise and then you'll see profit taking on a grand scale. So selling (bearish) at the 60+ usd mark. A Bear attack?

4. That'll bring it down quickly and as the market sees that trend they'll short it, to I think what will be the real long term price of 45 usd.

The opportunity is over the first 1 or 2 days.

Buying at 37 usd and selling at circa 50 usd seems to me anyway, a play.

This pricing is indicative of exactly what I was saying on May 5. 


It's perfectly placed now to explode and whilst I suggested 67 Dollars as a high, I'm practically sure of it now and I might be low....Mad isn't it?


Get ready. Get set.
Circa 11am New York time with the bell ringing going on in Facebook's office (unusually) in Silicon Valley.

General Motors pulls it's "ineffective" Facebook Ads Today. IPO games are being played. Ignore them.

"There seems to be some perverse human characteristic that likes to make easy things difficult." Warren Buffett (81).


Funny thing this...General Motors just announced that it will stop advertising on Facebook. Claiming they've just discovered (!) that Facebook advertising is ineffective.

It's a Wall Street Journal story confirmed by Reuters (you can read it at the end of this blog) which are both business channels - the interest deepens - because an announcement like this, on business sites like these, in the days before an IPO, is peculiar to say the least. 

A loss to Facebook of only circa 10 million usd but a big loss in terms of face and PR. I'd love to see Facebook take down their page as shown above.

So what's the General Motors Facebook connection?

Of course, following its bankruptcy and recent rebound, GM is owned, in no small measure (26%), by the US government.

But legendary, market influencer Warren Buffets Berkshire Hathaway has recently announced (28 minutes ago, a half hour after the Facebook news on GM) they've taken a huge financial position in General Motors! 257m dollars worth.

The same Mr. Buffett who of course, only last Monday told investors at his AGM that he won't be buying into Facebook. And now, the company he announces major investment in, pulls out of Facebook - suddenly.

"We never buy into an offering," billionaire Warren Buffett told CNN at the annual meeting for his company Berkshire Hathaway this weekend.

"The idea that something coming out ... that's being offered with significant commissions, all kinds of publicity, the seller electing the time to sell, is going to be the best single investment that I can make in the world among thousands of choices is mathematically impossible," he said.

At the same time, The UK Guardian comes out with "The news comes as a poll conducted by the Associated Press and CNBC found nearly half of Americans believe Facebook is a passing fad"

A passing fad??? 

1. General Motors pulls it advertising. Damages the Facebook IPO.

2. Same day, General Motors announces Buffett has taken major investment.

3. General motors investor, Warren Buffett, then says no to a Facebook investment. Damages the Facebook IPO.

Co-incidence.....yeah. 

All on the same day.....

Let the games begin. 

There's more to this than meets the eye.

(Reuters) - General Motors Co will stop advertising on Facebook, a move that comes during the same week the social networking website is due to go public.

The U.S. automaker confirmed a report by the Wall Street Journal. A source familiar with the automaker's plans said GM's marketing executives decided Facebook's ads had little impact on consumers.

GM said it will still have Facebook pages marketing its vehicles, but it will drop use of paid ads. Anyone can create a Facebook page at no cost. GM pays no fee to Facebook for its pages, which allow the automaker to reach consumers directly.

"We regularly review our overall media spend and make adjustments as needed...it's not unusual for us to move our spending around various media outlets - especially with the growth of multiple social and digital media outlets," GM said in a statement."In terms of Facebook specifically, while we currently do not plan to continue with advertising, we remain committed to an aggressive content strategy through all of our products and brands, as it continues to be a very effective tool for engaging with our customers," GM said.

GM spends about $40 million on its Facebook presence, but only about $10 million of that is paid to Facebook for advertising. The rest covers the creation of content and the agencies involved, The Journal said.

GM, the country's third largest advertiser behind Procter & Gamble Co and AT&T Inc, spent $1.11 billion on U.S. ads last year, according to Kantar Media, an ad-tracking firm owned by WPP PLC. About $271 million of GM's total ad spend last year was for online display and search ads excluding Facebook advertising.