Friday, May 25, 2012

Facebook launches IPO

Facebook's foray into openly trading on the stock market began on February 1, 2012 when it filed papers with the Securities and Exchange Commission and was given a valuation of approximately $5 billion dollars. Potential investors were not told the cost of the stock or how many shares would be available for purchase, only that trading would begin in late May 2012.

Trading of Facebook stock began this past Friday allowing anxious investors to finally own a piece of the Facebook empire. The stock opened on the Nasdaq at $38/share and did break at least one record according to the Wall Street Journal, volume. In fact, "Facebook had traded 460 million shares by 3:07 EDT. The most ever for a US stock on the day of it's IPO."( But the record breaking has not continued.

As the market closed on the first few days of trading, the price of Facebook stock has started to fall. On Monday (May 21, 2012) the stock closed at $34.08 down 9.4% from the IPO price of $38. On Tuesday (May 22, 2012) Facebook stock was valued at only $31 when trading ended for the day. As the stock price continues to fall both current and potential investors are asking if Facebook is indeed a good investment.

Experts are wondering the same. In fact, IPO expert and professor of finance at the University of Florida Jay Ritter cautions that the IPO market is very unpredictable. Ritter argues that perhaps the price to sales ratio of the stock is too high, but he still invested. Other experts agree with Ritter and believe that the initial price of the stock was too high and did not account for other risks associated with an IPO such as:

*Many marketers have not figured out how to use Facebook
*There is a lack of strategy that has been established for using social media
*Content investment is difficult
*Consumers are not caring about brands in a social context through Facebook.

For more expert opinions on the IPO take a look at the video below or click on the following link:

Less than a week into trading there are still many questions about whether or not Facebook will be a stock market success or utter failure but it sure does have some work to do.

- Rachel

Tuesday, May 15, 2012

A NEW Perspective

Summer has arrived and with its arrival there are changes in the weather as well as to the Humber Marketing blog. With that said, let me introduce myself. My name is Rachel Kennedy and I have the pleasure of taking over from Tim Hendry and continuing to manage and write the official blog for the Humber Marketing Diploma Program. I was excited when I was asked to continue where Tim left off because social media and communication with students and colleagues is so important in the marketing field and I love to tell people about the great and innovative things that are happening! Throughout the summer the blog will be filled with personal anecdotes, events news and reviews and insights on interesting articles, posts from other blogs or newsworthy marketing stories that I hope you will find informative and entertaining. Share, comment, subscribe and tell your friends!

With the arrival of the summer, I have finally started to think about graduation in December and I have realized that there are a lot of things I like but only really three that I could think of as offering me a fulfilling career in marketing: music, traveling and the arts. To be honest, three is not that many so I started talking to friends about their interests; comic books, Star Wars, Star Trek, urban planning and medicine, so I decided to do some research. I read some comics, watched Star Wars and Star Trek, went on some Jane Walks and read A LOT.

With new found likes and my true areas of interest (somewhat) confirmed I looked into events and activities that would allow me to meet people in marketing, travel, the arts and music. The following are just a few of the things I am really excited about:

1) I was accepted to the Humber OCMC team for 2012.
2) I am volunteering for NXNE one of the best summer art and music festivals that Canada has to offer. (
3) I am hoping to volunteer for orientation at Humber in the fall.
4) I am attending STORE 2012 June 4-5, one of Canada's largest retailing conferences. (
5) I am attending the AdBuzz event "What You Weren't Taught in School." Check out the event details here:

What I realized from all of this is that I still haven't figured everything out but I am excited to be moving in the right direction. I guess overall, the two concrete results that came out of this mini experiment were that I am excited, and nervous for graduation but that through it all I am going to have a great time and meet some amazing new people.