Barring any unforeseen emergencies, Facebook will launch its long-awaited, super-hyped Initial Public Offering when Wall Street opens tomorrow. While the Eurozone’s impending implosion could put a damper on the rest of Wall Street indices, analysts believe that the NASDAQ, where FB will be listed and publicly traded, is likely be well insulated from those dangers. Lior Alkalay, eToro’s Senior Analyst, believes that Facebook is symbolic of the meteoric rise in social media and will eventually push the NASDAQ and more importantly, the NSDQ100, to a bullish cycle that has not been seen in many years.
Wall Street did close lower yesterday, still feeling the effects of the Eurozone fallout. But the momentum on the NASDAQ could change today as investors begin to put in their long positions and buy orders in advance of the Facebook launch. As of this writing on OpenBook, the bulls are carrying the NSDQ100 already by a ratio of 2 to 1. In the past 24 hours, OpenBook trader wmanos has had three long positions on the NSDQ100 hit their TP with an average return of more than 26% and has five more open longs waiting in the wings. In the past week, the trader has increased his allocation in the tech-heavy index to 58.6%, which has shown a gain of 9.9%.
Cash-rich tech companies are already crowding the NASDAQ, and with the help of other social networking sites like LinkedIn and Groupon, the NSDQ100 could soon be targeting 3500. LinkedIn rose 2.65% in yesterday’s trading, and has seen its share price double just since the beginning of the year, while Groupon is up nearly 30% thus far this week.
Facebook will announce its official share price for the IPO later tonight, but analysts’ expectations still put it in the $34 to $38 range. Though the intensity of the hype suggests otherwise, the Facebook IPO isn’t the largest in U.S. history; that honor goes to Visa’s IPO in 2008, a difference of about $2 billion. But analysts point out that that equates to only about $4 per share, and given the Facebook frenzy which exponentially grows as the IPO launch comes down to the wire, another $4 added to the price tag might not be insurmountable.
Wall Street did close lower yesterday, still feeling the effects of the Eurozone fallout. But the momentum on the NASDAQ could change today as investors begin to put in their long positions and buy orders in advance of the Facebook launch. As of this writing on OpenBook, the bulls are carrying the NSDQ100 already by a ratio of 2 to 1. In the past 24 hours, OpenBook trader wmanos has had three long positions on the NSDQ100 hit their TP with an average return of more than 26% and has five more open longs waiting in the wings. In the past week, the trader has increased his allocation in the tech-heavy index to 58.6%, which has shown a gain of 9.9%.
Cash-rich tech companies are already crowding the NASDAQ, and with the help of other social networking sites like LinkedIn and Groupon, the NSDQ100 could soon be targeting 3500. LinkedIn rose 2.65% in yesterday’s trading, and has seen its share price double just since the beginning of the year, while Groupon is up nearly 30% thus far this week.
Facebook will announce its official share price for the IPO later tonight, but analysts’ expectations still put it in the $34 to $38 range. Though the intensity of the hype suggests otherwise, the Facebook IPO isn’t the largest in U.S. history; that honor goes to Visa’s IPO in 2008, a difference of about $2 billion. But analysts point out that that equates to only about $4 per share, and given the Facebook frenzy which exponentially grows as the IPO launch comes down to the wire, another $4 added to the price tag might not be insurmountable.
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