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Facebook IPO

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Pr0d1gy said:
I'm sure this guy has something to say about your obvious opinion, which is one I wholeheartedly share:
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I think you guys vastly underestimate the value of targeted advertising and possible longevity of facebook.

Facebook is nearly universal at this point. Everyone and their great grandmother uses it. Millions upon millions of computer illiterate people use it, and they tend to use it every single day. TV advertisers can't get people to sit through a commercial any more but by golly millions will stare at the sidebar ads all day long on facebook.

This thing is not going away any time soon, either. It is a great way to keep up to date with family and friends around the world.
 
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Am I the only one who doesn't have a problem with a company being allowed to deal with whomever they want to with respect to these IPOs? It basically guarantees the company a certain profit for the shares it's selling, and allows them to negotiate that price in advance.

It sucks not having the money to be able to make those kinds of deals myself, but there's nothing unethical and nothing that should be illegal about the process.
 
dank69 said:
I think you guys vastly underestimate the value of targeted advertising and possible longevity of facebook.

Facebook is nearly universal at this point. Everyone and their great grandmother uses it. Millions upon millions of computer illiterate people use it, and they tend to use it every single day. TV advertisers can't get people to sit through a commercial any more but by golly millions will stare at the sidebar ads all day long on facebook.

This thing is not going away any time soon, either. It is a great way to keep up to date with family and friends around the world.
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I believe that's the issue...where does growth come from?
 
feralkid said:
I believe that's the issue...where does growth come from?
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Userbase growth? There probably won't be much. They're making $4 revenue per year per user right now. That's tiny, and if they can grow that, the business could be worth its market valuation.

I'm skeptical, but I was also skeptical about Google, so that shows you what I know.
 
Blackjack200 said:
feralkid said:
I believe that's the issue...where does growth come from?
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Userbase growth? There probably won't be much. They're making $4 revenue per year per user right now. That's tiny, and if they can grow that, the business could be worth its market valuation.

I'm skeptical, but I was also skeptical about Google, so that shows you what I know.
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That and more girls are turning 13 every day...
 
Blackjack200 said:
Userbase growth? There probably won't be much. They're making $4 revenue per year per user right now. That's tiny, and if they can grow that, the business could be worth its market valuation.

I'm skeptical, but I was also skeptical about Google, so that shows you what I know.
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Google makes more sense as they are an internet search engine. This plays perfectly into advertising money. FB? Outside of people showing their narcisism what does it provide to advertisers? I would imagine at some point they will start rendering a crapload of ad's on your FB page. People may be turned off by that like they were with MySpace's spam format.
 
Facebook shares [FB 33.94 -4.2918 (-11.23%) ] sank on Monday without the full support of the company's underwriters, leaving some investors down 25 percent from where they were Friday afternoon. I'll buy when it's < $10.00 a share.
 
dank69 said:
I think you guys vastly underestimate the value of targeted advertising and possible longevity of facebook.

Facebook is nearly universal at this point. Everyone and their great grandmother uses it. Millions upon millions of computer illiterate people use it, and they tend to use it every single day. TV advertisers can't get people to sit through a commercial any more but by golly millions will stare at the sidebar ads all day long on facebook.

This thing is not going away any time soon, either. It is a great way to keep up to date with family and friends around the world.
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As of Friday close FB P/E was 122, while GOOG P/E was 18. It is funny that FB is worth 1/2 of GOOG while it have a much smaller base of growth and source of income.

That said FB is now tanking and is currently trading at $34.
 
IGBT said:
Facebook shares [FB 33.94 -4.2918 (-11.23%) ] sank on Monday without the full support of the company's underwriters, leaving some investors down 25 percent from where they were Friday afternoon. I'll buy when it's < $10.00 a share.
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I don't know, I am not sure if that is a good way to go about thinking about it. What I'd want to see isn't a lower price, but a better way for them to make money. Facebook needs to take their talent and reapply it, or get some bodies on board that can make it happen. As it is now, it seems like they are just trying to squeeze more blood out of a turnip. Actually, I don't even see how doing an IPO would help them with that anyway. Is it like they need extra money to enact their plans? The way I understand an IPO is that you want to grow, and you have a plan to do it but not enough money to do so. So you go to the public, sell some shares, and you get money to do what you want. When you're successful with your plans, your investors get something nice in the way of dividends and/or better stock prices.

But I dunno, I haven't really dug too hard on the facebook thing. Maybe they really do have some sort of a plan.
 
Blackjack200 said:
Why would you compare FB to a restaurant franchise and a bank? FB is similar to Google in that they use a free service to build a user base that they can sell to advertisers, and Google makes tons of money.

McDonalds and Citibank might be more visible, but FB could have a very lucrative business.
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I heard somewhere that facebook doesn't make anywhere near as much as google per ad impression.
 
iGas said:
As of Friday close FB P/E was 122, while GOOG P/E was 18. It is funny that FB is worth 1/2 of GOOG while it have a much smaller base of growth and source of income.

That said FB is now tanking and is currently trading at $34.
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See, I should have shorted it already. But that would be pretty risky.

I wonder how much of the hype of the IPO was from a marketing campaign.
 
Blackjack200 said:
Facebook down to $35, if you bitched about not being able to "get in on" the IPO, now's your chance!!!

ROFL
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Given the assholish attitude of one major facebook stockholder in regards to throwing his American citizenship under the bus I hope it goes $5 lower tomorrow and then another $5 lower the next day....

After all unlike the Google IPO pretty much the only people who had a real shot of getting shares on the 1st day were the well-connected.

facebook's value is stalking and circle-jerking.
 
The writing was on the wall (street)....

Any second rate investor knew that this IPO was an unique
opportunity to massively short sell this fiat stocks....
 
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