I figure that if every other personal finance blogger is going to write about Facebook today and tomorrow, I might as well. Unlike most of them, I live in Silicon Valley. Also, in 2006 when I was moving here from Boston, they flew me out to be a lead engineer on their mobile engineering team. It occurs to me now that they might have read too much into the Blackberry bullet point on my resume.
Sometimes I look back and wonder what might have been if I had answered some interview questions differently. At the same time, some of the engineers I talked to had said that they put in 12-13 hours of work a day. This is one of the reasons that I never dwell on Facebook. It wasn’t a place that I was going to be successful at. I put in those hours at start-ups before, but I had reached a point where I needed to focus on balancing time with friends and family.
So the big news is that tomorrow Facebook is going to go public. What this means is that those employees will be able to start exercising their stock options and getting real cash to spend. It seems like that is grabbing some nationwide headlines. However, it’s magnified a thousand times in the local media.
It’s got me thinking, “With all the Facebook money in the local area, how can I capitalize on it?” I know a local real estate agent who is expecting a bit of a windfall as a flood of new millionaires look for housing. Try as I might, I haven’t been able to come up with a way to get my hands on any of that money. (If you have any tips, leave a comment.)
The question that everyone seems to be asking is whether they should buy into the Facebook IPO. It is looking to be priced at around $38 and I expect that it might close tomorrow somewhere in the $42-46 range based on the excitement. That would make Facebook worth around $120 billion dollars. That’s certainly a lot of money, but it is not an unreasonable valuation of Facebook in my opinion. I think once the excitement dies down it could fall back to close to $30 a share. At that point, I would probably consider grabbing some. I’m a strong believer that attention is one of the most valuable commodities in today’s world, and Facebook seems to be the leader with many people spending hours of their time there.
That’s how I intend to play the Facebook IPO. What about you?
Well, we know that Facebook isn’t going to be worth 36 trillion dollars?