Facebook's long-awaited IPO isn't living up to the hype, according to a report.
Bloomberg reports that institutional investors being wooed by Facebook's IPO roadshow are skeptical about the company's prospects since ad revenues haven't kept pace with user growth. The report cites "people with knowledge of the matter" who are not identified. Reps from Facebook could not be reached for comment on the report.
[More from Mashable: Facebook IPO Pitch: Can It Win Big Investors? [VIDEO]]
Facebook's IPO is scheduled for May 17. If institutional investors aren't sold on the company then the company will rely more on retail investors -- those who sell for personal accounts -- rather than the former who are made up of banks, insurance companies and pension funds. Retail investors are still bullish on the company, according to the report. The company could still drum up enough demand to sell its shares on the high end of a projected range, according to Bloomberg.
Meanwhile, an investor poll by Bloomberg found that 79% of investors, analysts and traders who subscribe to Bloomberg thought that Facebook's $96 billion valuation was too high. (A poll by Mashable found 37.6% of respondents said Facebook shares were priced too high while 28% weren't sure.)
[More from Mashable: Are Facebook’s Shares Priced Too High? [POLL]]
The apparent cool reaction comes after Facebook amended its S-1 form on Wednesday to reflect the fact that the number of ads per daily average user is dropping. CEO Mark Zuckerberg also drew criticism for his casual dress during the roadshow. Michael Pachter, an analyst for Wedbush Securities, told Bloomberg that Zuck's decision to wear a hoodie is a "mark of immaturity."
Bonus: How the Social Media IPOs of 2011 Fared
1. Yandex (YNDX) -20.8% from its IPO Price
Yandex, a Russian search engine, raised $1.3 billion when it went public in May, making it the biggest social media IPO of the year.
This story originally published on Mashable here.
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