The price of Facebook’s IPO is likely to be between $34 and $38. That is above the previous forecast level of $28 to $35. Of course, this means that demand for the share has risen sharply in the last few days. This is despite evidence that Facebook’s revenue growth has slowed and that it mobile sales are almost non-existent.
The lure of the offering remains Facebook’s 900 million users. Investors believe that there must be some way to turn that population into tens of billions of high margin revenue.
Facebook still may be able to pick the lock of display advertising, which it has not be able to sell at high prices. Whether it can win a race to smartphones against other social networks like Twitter and search companies like Google (NASDAQ: GOOG) is less likely. There are only so many angels that can sit on the head of the mobile device pin.
Douglas A. McIntyre
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.