The fifteen minutes it took yesterday Facebook to mark its first trading price seemed to presage that something did not work. And the bad prophecy was fulfilled.
The most anticipated premiere in recent times, the company that has managed to compete with Visa as the largest IPO in history, the operation has become a beardless Marck Zuckerberg in the second U.S. wealth was a disappointment.
The social network was flat, 38 euros in the same set as the price to release a day earlier. Nothing to do with LinkedIn, I get double the value of their securities on the day was long on the parquet and, curiously, the only major company in the new batch of punto.com emerging stock market remains positive that .
Facebook, or Facebloof, as has been renamed as the group, however, only got revalued by 12.3% to $ 43 . He did at first, that is, when he scored his first price quote. From there, nothing.
Deception in the market
“We have some people out there very happy,” said Wayne Kaufman, chief market strategist at John Thomas Financial , a retail brokerage Wall Street , the agency Reuters few minutes after the screening. “They had hopes that Facebook was considerably better. Bet there are many disappointed in the market.”
And they have reasons. The anticipation built around Facebook had set a 50% revaluation of the bar need to consider this debut a success. Just before the premiere, began to spread the floor a rumor that the securities may be around $ 70 , up 84% of the placement price.
But the reality was different and there were several reasons to be wary of Facebook, which in previous days had warmed the value, raising his fork placement and choosing finally the highest amount: the aforementioned $ 38 per share.
This amount assumed in valuing the entire company of $ 104,200 million and a PER (number of times the benefit amount is reflected in the title) of 100 times, taken as a reference to its historical earnings, compared to 19 of Google , his best comparable, or 14 of Apple .
But it was the only warning. This week it was learned that General Motors has decided to cancel an advertising campaign of $ 10 million in the social network to find that their ads are ineffective and do not increase sales.
“The actual receipts to have the company do not justify the assessment that is being given , and will have to work this part. May charge for the games, or by Instagram services. We also propose agreements with companies for promotions or market research …, “said Enrique Dans, a professor at IE Business School , a few days before the premiere.
In fact, one of the Achilles Heels of Facebook is precisely the problem that is proving profitable for your business, if they get their business figures in relation to its huge number of followers.
With 900 million users, this just enter the equivalent of $ 4 per profile , compared with $ 24 he had when Google went public. “The big question about Facebook is how she will raise their profits in proportion to its growth in users,” Hayley Tsukayama claimed in The Washington Post .
And, he adds Jaime García Cantero, an independent analyst, “the technology is difficult, because they always sell tangible things, but ideas, creativity, promise … It is also a growth sector of a very large and, therefore, many sometimes does not meet expectations. ”
With the release of Facebook IPO, of course, has not been achieved.