Investing

Facebook IPO Range Raised

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…

By Douglas A. McIntyre
Published May 15, 2012, 6:22am ET · 1 min read

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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

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Douglas A. McIntyre

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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