This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Facebook's Perfect IPO Timing

Stocks in this article: GSMS

MENLO PARK, Calif. ( TheStreet) -- Facebook is edging closer to its eagerly-anticipated IPO, according to The Wall Street Journal, which says that the social networking phenomenon may file its IPO documents on Wednesday. Experts say that now is the perfect time for Facebook to start out on its IPO path.

"We expected them to file in the third to fourth week of January because they closed their prior quarter Dec. 31.," said Sam Hamadeh, CEO of research firm PrivCo. "Now they get a full 120 days runway to take off with the IPO without showing any other quarterly numbers and filing any amendments."

"All the stars are aligned," he added. "We predict that it'll trade before May 15, probably in late April or early May."

Citing an unnamed source, The Journal reports that Facebook may be looking at a valuation of $75 billion to $100 billion. Morgan Stanley (MS), it added, is close to winning the deal to become Facebook's lead underwriter, although Goldman Sachs (GS) may also play a major role.

Scott Sweet, senior managing partner at IPO Boutique, predicts that Facebook will easily be the hottest IPO of 2012, and says that now is a great time for CEO Mark Zuckerberg to take the company public. "It's just time for them," said Sweet. "They have brought in the best of management and they are further monetizing their product."

Facebook's sales were estimated to be over $4 billion last year.

Max Wolff, an analyst with GreenCrest Capital estimates that Facebook's IPO could generate up to $150 million in banker fees.

"Facebook is obviously the IPO of the year, maybe the IPO of the decade, likely the largest IPO in dollar value in American history," he said. "The market is a pretty dim environment right now, but you have a very bright light coming in."

A Facebook IPO, however, would not necessarily encourage other tech companies to go public, according to Tom Fox, head of Global Capital Markets at UBS (UBS). "Facebook is so unique," he said, in a IPO briefing with reporters this week. "It's so distinct and it's so different that it won't provide a meaningful impact on other companies."

"Last year, there were always some major risks to Internet companies that came public," noted Ryan Jacob, chief investment officer of Jacob Internet Fund. "They were lackluster and disappointing - in this case, for Facebook the only major risk is execution. When that's you're biggest risk, it points to an enviable position."

Facebook has not yet responded to TheStreet's request for comment on this story.

--Written by James Rogers and Olivia Oran in New York.

>To follow the writers on Twitter, go to http://twitter.com/jamesjrogers and http://twitter.com/ozoran.

>To submit a news tip, send an email to: tips@thestreet.com

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs