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IPOs: From Netscape To Facebook

Posted By Anna W On February 3, 2012 @ 12:30 pm In Investing,IPOs | Comments Disabled

In case you were unaware, IPOs are terrible investments — at least most of the time. The lottery ticket dreams keeps hope alive that this next one is going to be a giant winner.

Hopes are pinned on the giant Facebook IPO, coming out at an expected 100 X earnings and 30 X revenue. Its going to take extrordinary growth to justify those prices, especially for people who buy stock in the open market at higher than IPO prices.

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Source: NYT [1]


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[1] Image: http://www.nytimes.com/interactive/2012/02/02/business/dealbook/from-netscape-to-facebook.html

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