In Facebook IPO, Frenzy, Skepticism
Facebook Inc.'s coming initial public offering has set off a frenzy of anticipation among Main Street and Wall Street investors desperate to get their hands on the stock.</br></br>Late Monday, the social network raised the price range for its IPO to $34 to $38 a share, from $28 to $35 a share, in a sign of investor appetite for the offering. The Menlo Park, Calif., company's initial price range put Facebook's valuation at $77 billion to $96 billion, but that rises to $93 billion to $104 billion under the new price range as investor interest ramps up.</br></br>Those numbers have created high hopes for both individual and professional investors. The excitement has drawn in fledgling stock buyers such as 11-year-old Jade Supple of Rockville Centre, N.Y., whose father plans to bet money saved to put his daughter through college on Facebook shares, although he has doubts about the price.</br></br>In Berwyn, Pa., hedge-fund manager and mutual-fund manager Chris Baggini of Turner Investment Partners says he tracked Facebook closely and repeatedly called executives at Morgan Stanley or Goldman Sachs, which are helping to lead the IPO, to snag a spot in the social network's roadshow stop in Philadelphia last Wednesday.</br></br>Across the nation in El Cajon, Calif., technology teacher and investment-club supervisor Todd Benrud is trying to get his club at Grossmont High School into Facebook stock. "They use Facebook every day," Mr. Benrud said. Some students think it is "guaranteed to make money."