Facebook's IPO: Is it only for the big time investors?
Who can buy shares in facebook's IPO? Shibani Joshi and Larry Fishelson explain
- Duration 10:10
- Date May 9, 2012
Who can buy shares in facebook's IPO? Shibani Joshi and Larry Fishelson explain
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Well we can't not talk about big elephant in the room Larry Friday phase buck.
-- huge dive PLO Larry officials sent here to see -- -- of dynamic Diana link it communications.
And -- you specialize in Telecom right.
Correct and we're talking about FaceBook today because -- nine days from now -- have this megas last Vegas technology IPO the world has ever seen.
And everybody wants to -- on it now typically with IPOs.
You can't just.
Call your bank and say hey wanna buy a a hundred shares tonight in Facebook's case we're learning a little bit more about -- some of the online brokerages.
Are requiring and I some cases you need to have like half million dollars in the banks.
So could that mean that they're targeting the big investors dress -- get in -- Let's say get -- on FaceBook IPO.
Why would you want to get in line.
You wanna get out because you're talking about a company that is 900 million users that's looking to get to two billion.
Users they said that FaceBook -- -- and two billion is what.
The Internet had so that is a -- for -- yes to get to two billion.
So -- there's huge upside there.
So to get to all those users right they also said the S1 that they wanted the mobile market -- looking at a company that's cranking it out that has major major growth.
So to get in on the IPO I don't look at it is getting in on it and making a flip on -- which many people might look at this is a long term growth opportunities way.
Its growth story because if you look at it what they have is they have the information.
On all the users so that means advertisers can automatically target.
That are ready likes their product.
So there's no other company in the world that's doing this now we're in a big tech boom.
We're -- -- -- ecosystem right now with Smartphones taking over social media pushing the game on personal side.
And on the business side so I look at this is a blue chip stock not a quote unquote 1999 tech bubble stock.
This is a real product that -- scale like no other.
Product yes I wonder how long it takes for faithful to be added down and here's something like Microsoft or Cisco.
It will mean that you.
I do I think what's gonna happen right now is they're gonna it.
Make a big play for the Kodak patent auction like we just so when Microsoft they want 550 million dollars of -- they're gonna jump in -- Kodak.
And get those patents they're gonna get -- reducing before I'm sorry patents.
Could have some yet Kodak's only answer the Sony patents is is a nice play for them as well -- but I also look look for them to go out and acquire other companies.
Right always been used to -- part of -- -- it's a -- was a -- -- ten billion bucks.
Even -- a billion dollars because look at the growth that they have they have to grow through acquisition so I see them also going to -- Tumblr.
I see is an acquisition I see Netflix as an acquisition really -- streaming media to get into the contents.
-- -- get it need to get that content play in the -- play.
Now another question in getting in on -- Zynga.
My 15% of their revenue comes from Zynga right now there's online gaming goes through Zynga could be the largest.
Online gaming in the world then.
So Mark Zuckerberg you know could be it could be major in the in the gaming industry as well.
-- from all aspects from social personal business.
Here's a product that you've targeted every aspect.
Right this Shibani Joshi our technology expert at Fox Business is probably that -- talked about -- FaceBook -- should you know.
I -- today -- -- may be targeting the mobile space Shibani or.
Or eight felony answering our assessing and prominently with the smaller percentage in terms of what it does have out there on the mobile space and on the company's.
Our road show this week they've talked about the opportunity that is sitting there right in front -- and the -- it even acknowledged in its SEC filings.
And that the mobile is going to be the biggest growth generator reason we think about it.
There's already 900 million people on FaceBook right now and you think about how many how many people actually have access to -- -- and it in the world.
And it's like one point something billion so intent -- and -- -- in China and it's not even accessing -- and there's and now there and there isn't that hurdle rate so that there is the -- -- sort of opportunity it's it's China it's India.
As those nations get more and more modernized and they get access to computer is in high speed Internet access they can do it on mobile.
But being able to mom -- monetize sat down -- -- in -- a growth story than we had an expert on yesterday who said the mobile market is for consumer -- the retail market is gonna grow 800% by the year 28.
It is going to explode and what many people don't realize is they just quietly went ahead and bought of big mobile apple went to the other day yesterday yesterday so many people realize there -- this IPO is all about acquisition.
This is buying acts.
And then nicely Netflix once again is the big -- to get into the contents what contents apps is where you want to be and where you where they're gonna move.
And not in the in the too distant future I could see them getting it to the mobile play an on going up -- -- may be mobile infrastructure.
Because if you look at about it if you look at right now you have all the data being pushed to the Smartphones and then.
There's not enough.
Network out there right.
So why not.
If you revolutionizing.
And you need to push the mobile -- an activity in -- infrastructure in the mobile play.
And you know back to the role that's why if you look at all the things that they have now and everything they don't have its its major.
Yes it is major and that's one of the reasons we think it's gonna be the hottest stock of the year.
The hottest guy Heidi getting you're not you're just not -- be able to.
And I sort of an account if you have half a million Lexus at the right place to -- you can get in but that's it challenges that it amounted to it's gonna be eliminated it's going to be -- limited announced and there couple online brokerage firms that do have access to shares TD Ameritrade and and Charles Schwab.
Here's -- caveat at its at TD Ameritrade you have to have 500000.
Dollars in your account and trade 36 times a year and -- -- you have to -- established investor he and Mary and -- trading at that 250000.
And trade thirty times over the past three months.
You have to be it pretty wealthy investor even at these online brokerage firms and we have to be an active investor TV's wanna show up and and and call.
I'm your local point person and say hey you've never heard -- me before and I wanna get some shares it's more than likely they're not going to be able to do that.
But that being said this is pre IPO this is -- -- the -- before they start trading after they start trading.
Then you start to see a different picture that's when the average investor is going to be able to come men that you're gonna miss out on -- day one pop which we believe is gonna happen and communal.
We can estimate how big it's going to be.
But dead that day one -- -- -- -- typically hold your shares trade for about thirty days.
You have sold your shares -- if -- an outside investors different rules are outside person inside investors so what we'll see is.
-- what we'll see is sort of like a wave you'll see outside investors starting to -- shares first and then you'll start to see insider is.
Like employees start to slip shares about 6 months later this morning in mid -- yes.
But you know that but that's okay if you if you're -- regular investor also sue if you're in the institutional investing side -- gonna get the notes can be bought a lot.
Through people's mutual funds.
So what I would look to do here is you know don't just let it be played in in in your mutual -- to the ET FCN being traded funds.
Go ahead and buy -- on the market and that's OK if you're not getting it admits that pre IPO by also to the rule is you also have to have a million dollars in net worth.
Or an income over 200000 dollars and that's the that's the SEC rule and you also to trade a minimum of twelve times a year in different yeah.
Thank you Mr.
President yes there's yet so that's not the everyday investors so those folks rule will.
Get out pop on it better.
That are in the stock.
But if you get a look at it won't but don't look at this -- trade look at it as an investment those folks hey look at it -- a trade.
-- -- on the market as an investment with the growth model.
And you will do well on the stock.
She achieving more people are and a look at as a growth investment management -- -- -- it.
I don't know I think it depends on who's buying it on day one anything people who -- in that stock I think they're trying to get out of that they think it's a lot and -- -- -- he's just your money right now -- -- wanna make big pieces and these are how hedge funds and begins yet still -- get their money they're gonna take your date making me a 40% return on their money on day one it's it's easy money be foolish not set.
To catch setting if they wanna come in again at a different point they can always do that -- -- cash in on the gains.
That's what they do for a living and that's what they get paid for is -- -- Completely yet Thursday.
Orders did you get get you got to trade party that's gonna go ahead and and and make the pop okay again then you have what we're talking about -- -- the average investor.
That we're talking to today that that wants to go out.
Don't ebitda don't even look at what everyone else is still -- the -- don't even look at that just go ahead by what you feel comfortable with adulterous.
Say -- senior mutual fund by this one on the market lot of people can't buy apple 550 dollars.
Who -- 600 dollars but they can get a piece of -- growth stock the beginning at a rate that they have painted the normally wouldn't get of that.
Larry officials send thank you for coming on us money -- thank you for your insane as well today and really quickly.
We we have a comment on our chat from VS -- here.
He says IPO's -- -- big ways it's easy money before the rest of us get in about twelve exactly the moral of this FaceBook story thanks everybody for joining us.