Facebook Feeding Frenzy Boosts IPO Range
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Peter Foley/Bloomberg via Getty Images(NEW YORK) — A feeding frenzy for Facebook stock is pushing the price higher for the year’s hottest initial public offering.
The social networking site that was started in Mark Zuckerberg’s Harvard dorm room eight years ago is set to raise the price range for its IPO — set to take place on Friday — from $34 to $38 a share, putting the firm’s value at more than $100 billion.
From hedge fund managers to small investors, there’s a huge appetite for Facebook stock. The New York Times reports in Asia alone, the offering is said to be more than 25 times oversubscribed.
“This is going to be the most talked about IPO,” says Tim Stevens, editor of the tech website Engadget.
But some analysts say the hype is totally overblown. Despite its huge popularity, profits have been relatively modest, and if the site boosts revenue by increasing advertising on its pages, there’s a risk many users will unfriend Facebook.
Copyright 2012 ABC News Radio