Facebook officials in Boston to woo investors
BOSTON (WHDH) -- Facebook company officials came to Boston Tuesday, ahead of Facebook’s initial public offering for investors later this month.
Will the stock be worth the money? It’s one of the biggest IPO’s to ever hit Wall Street and when it happens a lot of people are expected to become very rich -- but will it make investors happy?
Investors looking to get in on the ground floor of Facebook’s IPO met with company leaders on Tuesday in Boston. One potential investor wasn’t happy -- because CEO Mark Zuckerberg was a no show.
“We’re giving him the money, right? He’s the boss. He owns 57 percent of the company and it’s usually on these road shows you’re going to want to see the big guy there,” said Calvin Hori of Hori Capital.
Zuckerberg answered questions from investors in New York on Monday.
When it comes to Facebook, everyone knows what it does -- with 900 million users there are few secrets. That’s why one Boston financial manger says be careful.
“Everybody wants a piece of it and those who are going to get the stock on the initial public offering will be very unhappy. All they get is a slice or two of a loaf -- that’s a very big loaf of bread,” said John Osbon, Osbon Capital.
Osbon says Facebook’s success will trigger more competitive products from other companies. Already Google has come out with their version called Google Plus.
If you want in the game, be prepared.
“As far as owning it, my only advice is own only as much as you’re willing to lose 100 percent of,” said Osbon.
Billionaire Warren Buffet is staying away, but Donald Trump is all in.
If you’re looking to score the best price many people in the know say be patient.
“They made it clear that they’re investing for the future, so you won’t see much in terms of high profitability in the short term,” said Hori.
The IPO stock price should be between $28 and $35 a share and many expect that price to go a lot higher.