Buy Facebook Friday? Here’s How


On Thursday, Facebook made history; it’sIPO is officially the largest in Internet history and in honor of the occasion, the Fast pros slipped on hoodies as an homage to CEO Jeff Zuckerberg.

The stock priced at $38 a share, giving the social network a $104 billion valuation.

For the sake of comparison the valuations are akin to that of Amazon and exceed that of Hewlett-Packard and Dellcombined.

And that begs the $104 billion dollar question – should you buy the IPO?

Trader Keith McCullough says getting into the stock on Friday makes more sense than many investors think. “Facebook has 100% revenue growth – 70% gross margins – there’s little that you can buy in the market that’s big cap that reflects that.”

If you’re committed to getting into Facebook on Friday, trader Steve Grasso says here’s how to do it.

“Don’t chase it immediately,” he says, “but take careful note of the opening print. “Then, step back and let the market absorb the stock. At some point during the session, the stock should pull back - and then it will find support. That’s where I’d pull the trigger, if I was buying on Friday.”

However, we’d be remiss, not to add that whether you’re a pro or a retail investor, trader Joe Terranova thinks it’s crazy to buy on Friday. “It makes no sense,” he says.

If you can wait for their first earnings report, that’s the best course of action. “See the numbers. Hear from them on a conference call. See what the story is, when they’re challenged by analysts,” counsels Terranova.


NEW SLIDESHOW: The Facebook IPO: A Fast Money Primer


Posted by CNBC's Lee Brodie

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Trader disclosure: On May 17, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Mike Murphy is long TGT; Mike Murphy is long ANF; Mike Murphy is long SBUX; Mike Murphy is long FCX; Mike Murphy is long PEP; Mike Murphy is short GPS; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long SBUX; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long AAPL; Joe Terranova is long HPQ; Joe Terranova is long LQD; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Jim Iuorio is long C; Jim Iuorio is long GLD; Jim Iuorio is short GS

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