Facebook IPO watch.

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kranky

Elite Member
Oct 9, 1999
21,019
156
106
FB stock tanked 18% yesterday after their first earnings report as a public company. Revenue up 32%, but no change in profit. But no worries, the executives insist that getting more ads on mobile platforms is going to boost profits.

Stock is now down 37% since IPO.
 
Sep 29, 2004
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Ya, all it's going to take is more advertising to justify their market cap. If they don't grow someonehow, the stock will be in the low teens in no time. And with no growth prosepcts, in the siggle digits.
 

Fritzo

Lifer
Jan 3, 2001
41,920
2,161
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Ya, all it's going to take is more advertising to justify their market cap. If they don't grow someonehow, the stock will be in the low teens in no time. And with no growth prosepcts, in the siggle digits.

In other news, analysts are saying "Buy Apple stock now in front of the iPhone 5 release in fall."

LOL- it's at like $575/share right now. Even if it went up $20, you would need about $60000 worth of shares to make $2000. You can make 3% on a savings account.

I don't get investors.
 

RapidSnail

Diamond Member
Apr 28, 2006
4,257
0
0
In other news, analysts are saying "Buy Apple stock now in front of the iPhone 5 release in fall."

LOL- it's at like $575/share right now. Even if it went up $20, you would need about $60000 worth of shares to make $2000. You can make 3% on a savings account.

I don't get investors.

Were can you make 3% on a savings account? Mine only gives 0.03%. :(
 

actuarial

Platinum Member
Jan 22, 2009
2,814
0
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Were can you make 3% on a savings account? Mine only gives 0.03%. :(

Let alone 3% by October/November.

Edit: 3% over 4 months is 9.27% annualized. Not getting that in a savings account. This is assuming any stock bump due to 5 happens right after people storm the stores to get it.
 
Mar 10, 2006
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In other news, analysts are saying "Buy Apple stock now in front of the iPhone 5 release in fall."

LOL- it's at like $575/share right now. Even if it went up $20, you would need about $60000 worth of shares to make $2000. You can make 3% on a savings account.

I don't get investors.

That's why I don't trade expensive stocks most of the time.

I like 'em with small float and <$10/sh.
 

gevorg

Diamond Member
Nov 3, 2004
5,070
1
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FB 90 day lockout is approaching in a couple of weeks. Will employees flood the market with their shares? How soon until FB goes under $20? :D
 
Sep 29, 2004
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FB 90 day lockout is approaching in a couple of weeks. Will employees flood the market with their shares? How soon until FB goes under $20? :D

The smart ones will dump atleast half. Too many people believe in hope though. Those people are screwed.
 

Doppel

Lifer
Feb 5, 2011
13,306
3
0
Man, it's a beautiful thing watching this stock go to pot, it's now down to $21.65 as of this post, 6.48% today alone. http://data.cnbc.com/quotes/fb

When do the next bunch of employees get to dump their shares? Zynga is under $3 today, it IPOed at $9.50 lol
 
Sep 29, 2004
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I stand by what I said initially. FB will get to the low teens before it stabalizes. Could go lower with no real growth prospects though.

Hey, everyone hear that HTC is making a facebook branded phone. That should fail miserably. Going to be a custom Droid based OS.
 

SketchMaster

Diamond Member
Feb 23, 2005
3,100
149
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Quote from G+ Post:

Advertiser leaving Facebook after discovering that 80% of the clicks they're paying for are from 'bots.'

A company called Limited Run publicly announced on Facebook that they're leaving Facebook, and for two reasons:

First, they did their own analytics and found that 80% of the clicks Facebook was charging them for were from automated "bots."

Second, the company changed their name. They requested that Facebook change the company name on the business page. But Facebook told them (allegedly) that in order to change their name on Facebook, they would have to spend $2,000 more per month on advertising.

If these allegations are true, how widespread is this abuse?

https://www.facebook.com/limitedpressing/posts/209534972507958
 
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Sheep

Golden Member
Jun 13, 2006
1,275
0
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Quote from G+ Post:

Advertiser leaving Facebook after discovering that 80% of the clicks they're paying for are from 'bots.'

A company called Limited Run publicly announced on Facebook that they're leaving Facebook, and for two reasons:

First, they did their own analytics and found that 80% of the clicks Facebook was charging them for were from automated "bots."

The 80% clicks from bots number isn't limited to just Facebook.
 

nboy22

Diamond Member
Jul 18, 2002
3,304
1
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Because it isn't worth nearly as much as these investors were speculating. It's a beautiful thing to watch people lose money over such an obviously horrible investment. At the rate they were going and valuing the company at 100 billion with the IPO they would have to exist for another 99 years for it to even out and actually be worth it. There's no way in hell they are going to increase their profits that much, and even if they did increase their profits to 3x as much (3 billion/year) they would still have to exist for like 33.3 years for it to make sense.

Just look how fast myspace died. Granted facebook has more of a market stronghold, I think they are at their pinnacle right now, or very very close.
 

Destiny

Platinum Member
Jul 6, 2010
2,270
1
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The thing that people have to realize is that Facebook is a FAD... people will move on to newer and cooler things and that is why Facebook went IPO to do two main things:

1) So early investors and equity holders can cash out their Facebook stocks.

2) To get enough cash reserves to buyout the next big FAD to prevent user migration (aka Instagram).


Facebook's growth is affected inversely to their main revenue source:

To increase stock price they must increase revenue and to do that they have to increase advertising and other stuff... when you do that you lose users/members... and when that happens growth slows or stops and advertising value drops...

Doesn't take a stock analyst or rocket scientist to figure this out...:sneaky:
 

nboy22

Diamond Member
Jul 18, 2002
3,304
1
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The thing that people have to realize is that Facebook is a FAD... people will move on to newer and cooler things and that is why Facebook went IPO to do two main things:

1) So early investors and equity holders can cash out their Facebook stocks.

2) To get enough cash reserves to buyout the next big FAD to prevent user migration (aka Instagram).


Facebook's growth is affected inversely to their main revenue source:

To increase stock price they must increase revenue and to do that they have to increase advertising and other stuff... when you do that you lose users/members... and when that happens growth slows or stops and advertising value drops...

Doesn't take a stock analyst or rocket scientist to figure this out...:sneaky:

My thoughts exactly. It is kinda common sense when you use a little logic. I already see a lot of people wanting to or deleting their accounts.
 

gevorg

Diamond Member
Nov 3, 2004
5,070
1
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Although on Aug 17 about +270 million stocks will float, it looks like it is Nov 15 when most of the FB stocks will come on market. Over a billion more shares will float then.
980897-13435906232290397-Investors-Mosaic.png

http://seekingalpha.com/article/765811-facebook-investors-your-nightmare-has-just-begun
 

chris9641

Member
Dec 8, 2006
156
0
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Because it isn't worth nearly as much as these investors were speculating. It's a beautiful thing to watch people lose money over such an obviously horrible investment. At the rate they were going and valuing the company at 100 billion with the IPO they would have to exist for another 99 years for it to even out and actually be worth it. There's no way in hell they are going to increase their profits that much, and even if they did increase their profits to 3x as much (3 billion/year) they would still have to exist for like 33.3 years for it to make sense.

Just look how fast myspace died. Granted facebook has more of a market stronghold, I think they are at their pinnacle right now, or very very close.

Guess we have a difference in the word beautiful... uninformed people were manipulated. I see what you're saying, it was an easy read, but don't you think that seeing that as beautiful you're rewarding the behavior that caused the IPO.
 
Sep 29, 2004
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Guess we have a difference in the word beautiful... uninformed people were manipulated. I see what you're saying, it was an easy read, but don't you think that seeing that as beautiful you're rewarding the behavior that caused the IPO.

I feel sad for people with 401Ks that bought Facebook and those poor people unknowingly own the stock now. Pretty much the same goes for people with Mutual Funds.

This is why Wall Street is shit. They screw the average working person.