The Facebook IPO is scheduled to debut late next week. This is possibly the most anticipated IPO since Google Inc (NASDAQ:GOOG). While the hype of Facebook makes it a high risk buy at the debut price, there are other ways to swing trade the social networking stock. Both Zynga Inc (NASDAQ:ZNGA) and Groupon Inc (NASDAQ:GRPN) are trading at all time lows.
GSV Capital Punished for Expanding Facebook Investment
Venture capital firm GSV Capital (NASDAQ: GSVC) will sell an additional 3 million shares of common stock in order to raise funds that it will use to buy interests in Facebook, Twitter, and Kno Inc.. The company will also use the funds to invest in Dropbox, StormWind, DreamBox, Grockit, ZocDoc, and other young internet-based companies.
Welcome to the big leagues, Groupon. Shareholders punished the stock in after-hours trading Wednesday after the daily deals site posted a surprise loss for its first quarter as a public company.
Groupon reported a net fourth-quarter loss of $42.7 million, or 8 cents a share, on sales of $506.5 million.
Facebook filed a highly anticipated five billion dollar IPO last night, which has made the entire social media sector boom today. LinkedIn (NYSE: LNKD) is up nearly 6% and Groupon (NASDAQ: GRPN) is trading up almost 7%. As a result, the Global X Social Media Index Fund ETF (NASDAQ: SOCL), in which aforementioned stocks have a significant weight is up 2.5%.
(MEAS, GRPN, CLNO, CREE) Stocks Report by StockHotTips.com
A Look Back at 2011 Web IPOs and Their Performance
Echoing the dot-com boom a decade ago, a wave of Internet companies with lots of buzz but shaky business models went public this year. Here's how they've held up.
IPO date: January 26
IPO price: $17
Now trading at: $8.06
Revenue for first 9 months of 2011: $240 million
Loss for first 9 months of 2011: $15 million
The markets are dropping sharply again. The Dow Jones Industrial Average is down over 150 points on the trading session. This is the sixth straight down day in the markets on continued panic from Europe. The contagion appears to be spreading to Germany as their most recent bond auction went poorly. This is extremely concerning for the European Union.
Venture capital firms are the life blood of the Internet industry, as new firms pop up seemingly every day in a variety of different fields.
Heck, Benzinga is funded by a venture capital firm, LightBank, which was founded by Eric Lefkofsky and Brad Keywell, co-founders of Groupon (NASDAQ: GRPN).