The Facebook IPO Bubble

Presented by Betterment A Better Way To Invest the facebook IPO Itching to buy Facebook stock? Beware of the IPO Bubble. It just might burst.. 41% of 2011 IPOS dipped below their opening price in the same year. original value: $7 Billion value now: 1/2 as much zynga December 2011 PANDORA June fırst day peak: $26/share 2nd day price: $13.25 2011 loss: 50% in 1 day Lost 24% of its IPO price in just 24 days GROUPON November 2011 Dropped from $122/share in May to $56/share in Linked in November May 2011 (facebook May 2012 Opening price: $38 per share Value in 6 months: ??? Modern Portfolio Theory A diversified portfolio of thousands of companies The average return of the market portfolio over the past 20 years is 7.86% Presented by Betterment A Better Way To Invest Projected return of 7.86% is based on Betterment LLC's recommended partfolios and, for periods that pre-date the issuance of funds in our current recommended portfolios, broad market indexes from 1926-2011 for stocks and 1942-2011 for bonds. Projected returns are not based on returns of actual Betterment customers. Past performance is not a guarantee of tuture success, and in fact volatility means that returns in any period may be far above or below those of previous period. Investments at Betterment may lose value. Projected returns account for the reinvestment of dividends as well as investment fees. Betterment is unable to predict ar forecast market fluctuations or other uncertainties that may affect the value of any investment. Model projections are inherently limited in that they do not represent actual trading nor material economic or market factors that might have had an impact on Betterment LLC's advice. Sources http://online.wsj.com/article/SB10001424053111903927204576570714266274044.html http://www.usatoday.com/money/perf/stocks/2011-06-16-pandora-falls-below-ipo-price_n.htm http://www.forbes.com/sites/roberthof/2011/12/16/zynga-ipo-goes-splatville-what-happened/ http://online.wsj.com/article/SB10001424052970204409004577158744071030040.html http://allthingsd.com/20120109/zyngas-stock-no http://www.usatoday.com/money/perfi/stocks/2011-06-16-pandora-falls-below-ipo-price_n.htm http://www.bloomberg.com/news/2011-06-16/pandora-plunges-below-ipo-price-reversing-yesterday-s-gains-3-html http://seekingalpha.com/article/310736-the-2011-ipo-class-it-you-re-late-to-the-party-don-t-bother-showing-up http://tech.fortune.cnn.com/2011/12/12/the-problem-with-linkedins-stock-price/ http://www.huffingtonpost.com/2011/11/28/groupon-shares-fall-again_n_1117541html http://dealbook.nytimes com/2012/05/03/facebook-to-set-target-after-market-close/ http://hnance yahoo.com/news/facebaok-expands-ipo-size-aims-011714670.html http://www.doughroller.net/investing/facebook/ nosedives-falling- ing-nine-percent-to-hit-new-lo w-low/?mod%3Dgooglenews © 2012 Betterment LLC. Other names and logos used are trademarks/registered trademarks of their respective owners. & True Tried