News briefs for Tuesday, May 15

AP-CNBC Poll: Half of Americans say Facebook appeal will fade, IPO shares overpriced

Half of Americans think Facebook is a passing fad, according to the results of a new Associated Press-CNBC poll. And, in the run-up to the social network’s initial public offering of stock, half of Americans also say the social network’s expected asking price is too high.

The company Mark Zuckerberg created as a Harvard student eight years ago is preparing for what looks to be the biggest Internet IPO ever. Expected later this week, Facebook’s Wall Street debut could value the company at $100 billion, making it worth more than Disney, Ford and Kraft Foods.

That’s testament to the impressive numbers Facebook has posted in its relatively brief history. More than 40 percent of American adults log in to the site —to share news, personal observations, photos and more— at least once a week. In all, some 900 million people around the world are users. Facebook’s revenue grew from $777 million in 2009 to $3.7 billion last year. And in the first quarter of 2012 it was more than $1 billion.

Just a third of those surveyed think the company’s expected value is appropriate, 50 percent say it is too high. Those who invest in the stock market are more likely to see Facebook as overvalued, 58 percent said so. About 3 in 10 investors say the expected value of shares is fair.

But price worries won’t necessarily stop would-be investors. Half the people surveyed say they think Facebook is a good bet, while 31 percent do not. The rest aren’t sure. Americans who invest in stocks roughly agree, although investors who are more “active” — those who have changed their holdings in the past month —are more negative. Nearly 40 percent say Facebook would not be a good investment.

 

Clock ticking as Alzheimer’s strategy sets 2025 goal for better ways to treat, stall, disease

WASHINGTON (AP) — The clock is ticking: The first National Alzheimer’s Plan sets a deadline of 2025 to finally find effective ways to treat, or at least stall, the mind-destroying disease.

The Obama administration finalizes the landmark national strategy on Tuesday, laying out numerous steps the government and private partners can take over the coming years to fight what is poised to become a defining disease of the rapidly aging population.

But some of the work is beginning right away.

Starting Tuesday, embattled families and caregivers can check a new one-stop website — http://www.alzheimers.govwww.alzheimers.gov — for easy-to-understand information about dementia and where to get help in their own communities.

The National Institutes of Health is funding some major new studies of possible therapies, including a form of insulin that’s squirted into the nose.

 

A guide to how JPMorgan’s surprise $2 billion loss might change financial overhaul

WASHINGTON (AP) — The $2 billion trading loss at JPMorgan Chase has renewed calls for stricter oversight of Wall Street banks. Two years after Congress passed an overhaul of financial rules, many of those changes have yet to be finalized.

JPMorgan’s misstep gives advocates of stronger regulation an opening to argue that regulators should toughen their approach.

The Obama administration has argued that it went as hard on banks as possible without further upsetting global finance. Now Democratic lawmakers and administration officials say JPMorgan case proves that more change is needed.

Still, many in the industry warn against reading too much into one trading loss. They say losing money is an inevitable part of taking risk, as banks must.

Some fear that after JPMorgan’s announcement, regulators will greet industry concerns with more skepticism as they flesh out key parts of the overhaul law.