FB is definitely overvalued. I but I don't doubt that the market will continue to over value it for years. There core business model is riding a high, and as long as people use it and respond to ads, well FB will always stay in the money.
Is it a good IPO to invest in if given the chance to buy in at initial price? Ofcourse!
Will it rise throughout the year because the world wants to believe that things are better and Facebook is their savior? Jesus, yes!
Is the market crazy and unpredictable? Never, the future is unpredictable, and hence effects the predictability of everything that exists. For the most part we know that this is a 'godsend' IPO for the tech world, putting thoughts like the 'new tech bubble' in peoples heads. Facebook has good value, but its overvalue is due to emotions and these beliefs.
Conclusion: Ride the high, while it lasts.expect correlation between goog znga aapl msft etc.. expect the market to really think its the best thing to happen since sliced bread. Eventually the hype will die down.
IMO, facebook is better off not going public, it does not need to. They have enough cash to stay afloat and if zucky is smart he'll stay private for as long as possible.
Now my question is, what would happen to those with private stock in the company, are the public shares being created a second class with less majority of the current class of shares? ? Are they going to go the GOOG route (Dutch auction) for their IPO?