Anyone following the news? It's down 33% from its first day high of $45, and there's a lot of talk the stock is really worth $9. There's also a lot of finger pointing and investigating going on. Personally, I think the stock could be huge, regardless of whether the site can thrive on advertising revenues. They just raised $100B from the offering, and it remains to be seen what they do with the money. If they spend it on operations, it's going to be a disaster. If they buy businesses that are generating revenues with the money, it could be hugely successful and the ad revenues won't mean _everything_. They could easily buy Yahoo! and AOL and have most of that money left over. Both those companies are ad revenue and service driven and have clearly seen their better days. But $100B is a nice fund to work with for turning those companies around. Yahoo! and AOL would be just two of many companies possible. They are in position to do an LBO of a company like Apple or Exxon. Sheesh.
yeah yeah his stock was worth 23 billion, now iits worth 15 billion, it drops down to 9 bucks a share hes got 4.5 billion worth of stock, although he did sell around a billion worth of his own stock in the ipo
How is the stock "huge" in potential? It's a social networking site that can't advertise on smart phones, which looking at my FB online feed now, has 13 out of 20 friends currently connect live to FB on it.
What an idiot. Seriously. We went through this before in the late '90s with internet overvaluation. This was a money grab from Morgan Stanley, Zuckerberg, other FB execs, and some major political players. It's a fucking Ponzi scheme.
Pretty much. Zuckerburg just dumped 30.2 million shares this afternoon. It's will settle at around $14 or so, IMO, by the end of the year. I just don't see the demand for that stock. Hell, you and I post much more often here than we ever do on Facebook.
If anyone whose interested in the stock market and gets bored you should peruse my dad's website: www.didalus.com He's particularly proud of his 2008 predictions.
The IPO raised $16B, according to USA Today, and set the market cap of the company at over $100B. The $16B is more than enough to buy every franchise in the NBA. The $100B is what would be used to figure for mergers and LBOs.
It's not a Ponzi scheme. Money grab? http://seekingalpha.com/article/604401-how-the-media-is-wrong-about-facebook-s-ipo The banks will make an astonishing $176 million on the IPO for doing arguably not a lot. That said, even though the banks will collect a lot of money, Facebook negotiated them down on fees. Historically, bankers have gotten a 7% fee for tech IPOs. Facebook paid just over 1%.
I don't know how anyone could be dumb enough to ignore all the facts about how much the company is worth and how much profit they would have to make for the stocks to be accurately valued.
Don't get me wrong. I am quite sure that if Facebook sits on that pile of cash, watching it dwindle as losses mount, that they'll crash and burn. You can't ignore that pile of cash and what it might be used for. If they start buying companies with the money, they'll be able to show those companies' numbers on their books. Hell, with the way the economy has been run, they could buy gold with the money and sell it for profit.
They didn't raise $100billion from the IPO. Not even close. A P/E ratio of about 100 isn't completely insane. Amazon P/E=175. Linked-in P/E=621. However, the biggest red flag is the fact that last quarter revenue was actually DOWN. A company with a P/E ratio should be putting up revenue growth of over 100%, but instead they actually had decreased growth. That is the worst metric of all the numbers being thrown out there.
