Facebook IPO: Not For The Average Investor

By Tom White:It has been three weeks since the most anticipated IPO was introduced to the investing public. In that time, the dust still has not settled from the surprising outcome. Facebook's initial public offering (IPO) was not the resounding success most people thought it was going to be - at least for those outside the company. Several factors contributed to this unexpected result, and validated our reasons for not participating in Facebook's IPO.

Today’s Facebook (FB) IPO is the first time I can remember being completely shocked at the lack of trading excitement and volatility for a much-hyped IPO. Ironically, the reason for such unexciting, rational behavior is because of how hyped the Facebook IPO was to begin with. The share allocation to retail investors at the $38 offer price was huge.

By Justin Weinstein:The Wall Street Journal reported that Facebook could IPO as early as February 1st with the hope to raise as much as $10 billion. This news comes after years of speculation about Facebook's valuation and how investors would respond to an IPO. Year after year the value has seemed to double. Only last year, Goldman Sacks (GS) reported that they would purchase a substantial stake in Facebook at a valuation of $50 billion.

The social network filed to go public earlier this week and is hoping to raise $5 billion in a huge IPO. The markets are buzzing, but what might it mean for an individual investor? Melissa Block gets the story on how high profile IPOs work from Dennis Berman, Marketplace editor at The Wall Street Journal.

By Jim Van Meerten: Facebook (FB) has gotten a lot of press and hype recently, but is it an investable stock? When I ask is it investable I don't mean can I recommend it as an investment, but is there enough information for me to make an intelligent decision on the stock's value. Up until now all we had were news stories and the hype press releases by the Underwriting group who we all know has a mission to sell an IPO for whatever the market will bear.

By David Zanoni:What's the deal with Facebook's (FB) IPO? It looks like too much hype for just a 23 cent gain over the offering price. The reality is that the company has been priced at an overvalued level.

By Valuentum: Remember all the hype before the Facebook IPO, and then how everyone was concerned about its ability to monetize mobile, which sent the stock tumbling after it started trading hands?

By David Merkel: (click to enlarge)