Counterparties: Facebook’s share price is a number

By Ben Walsh
May 18, 2012

Welcome to the Counterparties email. The sign-up page is here, it’s just a matter of checking a box if you’re already registered on the Reuters website. Send suggestions, story tips and complaints to Counterparties.Reuters@gmail.com

Facebook is now a public company. And on its first day of trading, Facebook, well, traded, and investors who bought a $38 stock now own a $38 stock, after Facebook’s underwriting banks stepped in.

Here’s a great graphic from the NYT that puts Facebook’s offering in the context of previous tech IPOs (hint: it was pretty damn big). For stock analysis, here’s NYU professor Aswath Damodaran. And for bearish perspective, take a look at Friendster and its nagging investors; MySpace and its “mismanagement, a flawed merger and countless strategic blunders”; and Ning with its wildly overblown notions of “double viral expansion loops.”

Or for counter-programmatic viewing, watch this history of John Baldessari, narrated by Tom Waits. There’s no better tonic to a $16 billion equity raise than a short film about a conceptual artist who once cremated his entire body of work. Which is even more drastic than deleting your Facebook account. – Ben Walsh

On to today’s links.

JPMorgan
JPMorgan didn’t have a treasurer during the five-month period in which its hedges imploded – WSJ
Jamie Dimon’s strangely glowing account of Jamie Dimon’s response to JPMorgan’s massive trading – WSJ

Crisis Retro
“Treasury wants to make banks boring again by selling CDOs of community-bank hybrid capital instruments” – Matt Levine

EU Mess
The best explanation of the chaos that a Greek exit from the euro zone would cause – Martin Wolf
The Greek exit becomes increasingly expensive over time – Sober Look

Facebook
Facebook’s secondary market pricing – Secondmarket
How to make $50 million trading Facebook – Felix
Peter Eavis: Facebook’s missing risk factor – Dealbook

Wonks
An argument that principal reductions won’t help the mortgage mess – Brookings Institution
Divorce rates help explain why Americans work more than Europeans – Vox

Politicking
Learning how to walk through the revolving door: the top lobbyist-producing colleges – Open Secrets

The Speech TED Didn’t Like
Why TED passed on the income inequality speech – Chris Anderson

Stuff We’re Not Linking To
The real-time Mark Zuckerberg Wealth-o-Meter widget – WSJ
Amity Shlaes: “Unemployment now, yes.” – Bloomberg View
Businessweek goes listicle for its cover: “Five hacks that have changed Silicon Valley forever” – Businessweek

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informative post ,thank you.

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