Facebook IPO has some investors wary (video)

The IPO is poised to be a blockbuster, but not everyone thinks that the social network's likely price is right.

Mark Zuckerberg
Mark Zuckerberg Facebook video via CBS News

Facebook CEO Mark Zuckerberg was mobbed like a rock star yesterday as he visited with potential investors in New York ahead of the social network's expected record-setting initial public offering.

But as CBS News correspondent Anthony Mason reports, some seasoned investors are more cautious about buying into the social network.

"I would not invest in it right now," Aram Fuchs of Fertilemind Capital told Mason. "You always have to wonder about the price when you make an investment, and the price is just way too high."

Over the weekend, Berkshire Hathaway's Warren Buffett said that companies like Facebook are the hardest ones to value.

Facebook aims to raise as much as $13.6 billion in its IPO . It has set a tentative price for its shares in a range between $28 and $35, which at the high end would value the company at $96 billion. Trading is likely to begin on about May 18.

About the author

Jonathan Skillings is managing editor of CNET News, based in the Boston bureau. He's been with CNET since 2000, after a decade in tech journalism at the IDG News Service, PC Week, and an AS/400 magazine. He's also been a soldier and a schoolteacher, and will always be a die-hard fan of jazz, the brassier the better.

 

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