The bungled initial public offering (IPO) for Facebook (Nasdaq:FB) was a real eye-opener for any company looking to go public.
Facebook's shares famously plunged soon after they started trading, in large part because the $16 billion offering was so large that it created a great deal of investor confusion as share allocations were misdirected.
Lesson learned. Twitter's imminent IPO will be for just $1 billion, leaving most of the company still in private hands. Look for Twitter to slowly offer more shares in various secondary offerings, but the initial scarcity factor is going to make huge instant profits for some investors.
If you can get a piece of this deal, buy it. But if you plan on buying shares only after they have started trading, you'll be making a big mistake. The relatively few shares means that shares are likely to be wildly overvalued -- at least at the start.
Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Wednesday, the 16th of October.
Tomorrow, Google (NASDAQ:GOOG) announces its long awaited earnings and I thought I'd take a look at this stock today before tomorrow's big announcement.
There are some interesting developments in Google (NASDAQ:GOOG) that have largely gone unreported. I will be using our Trade Triangle technology to point out these discrepancies to our viewers.
Of course, the Democrats and Republicans clawing at each other as they try to beat the deadline on the 17th is the big unknown for the market. My best guess is that there will be a deal that no one likes and the politicians will agree to "kick the can down the road" until next year.
Please feel free to leave a comment and share your thoughts on the markets or if you dare, Washington politicians.
Have a great trading day, Adam Hewison
Adam appears frequently on the following financial news channels as a guest expert. Click on any cable logo to watch Adam's latest appearance.