Friday, May 18, 2012

Facebook Opens at $42.05, GIves Up All Gains at $38.01

Facebook Opens at $42.05, GIves Up All Gains at $38.01Atlanta, GA 5/18/12 (StreetBeat) -- Shares of Facebook (Nasdaq: FB) are being quoted at $45 on Nasdaq before the open of trading at 11 am, well above the $38 offer price.

Actually, the indication has bounced around a little, retreating from $45 at first to $43 and then $42. Stand by.

Sterne Agee’s Arvind Bhatia, who has a Buy rating on Facebook’s shares, and a $46 target, tells me this morning “The price seems like a fair price,” with respect to the $38 offer.

“They could have potentially gone higher given the demand that we’re seeing, but they left some room for upside.”

Now the open has been delayed till 11:10, apparently. The indication has dropped to $42. Playing hard to get. Wedding jitters?

The average price target of 8 analysts surveyed by FactSet is $41.50.

A little light reading while yo wait for a quote: the most recent version of the prospectus.

Bloomberg TV is reporting Nasdaq says it is experiencing delays in opening trading.

The average Facebook estimate for this year is $5.076 billion in revenue and 59 cents in non-GAAP EPS, according to those eight analysts I mentioned. That would be 37% revenue growth and 36% EPS growth.

Headlines are coming from Dow Jones saying traders are “experiencing problems, changing, canceling orders.”

We have a winner: The stock has opened at $42.05, now at $42.49 and rising. That’s an 8% gain, so far. Now backing off to $41 and change.

Down to $40.23 … $40.00. Low so far, according to FactSet, is $38.20.

Video game purveyor Zynga (Nasdaq: ZNGA), which has made much off its money off the Facebook game “Farmville,” was halted by Nasdaq because of a circuit breaker. The stock is down $1.10, or 13%, at $7.17.

The stock’s broken through $40 and is $39.06, a 3% rise.

Sterne Agee’s Bhatia remarks, “I’m a little surprise we’re not seeing a bigger pop. I think it signals the pricing was fair, and from my standpoint it makes it a little easier .. it’s difficult for an analyst if there’s too much froth. I’m almost glad to see the stock not trade in an irrational matter.”

Now down to $38.07, up just pennies! Actually, it went down to $38.00, and is hovering at the $38.01 level.

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