This is well above the initial $17-20 range (and then the $23-25 range), giving it a market cap of $14.2 billion. Good thing E*TRADE isn’t one of the underwriters offering this since that is far too expensive (20-30 times revenue) for a company that based on it’s S-1 filing, has net margins of -30% (yes, that isn’t a typo) and doesn’t plan to be profitable until at least 2015.
So even though the stock may do a pop on the open market once initial price discovery and trading begins (so long as there aren’t any show stopping glitches that marred Facebook’s IPO), this one will likely drop back down once the reality sets in (i.e. plenty of time for longer term retail investors to buy in over the course of the next year).
