Facebook IPO

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dank69

Lifer
Oct 6, 2009
36,175
30,630
136
I'm sure this guy has something to say about your obvious opinion, which is one I wholeheartedly share:
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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Blackjack200

Lifer
May 28, 2007
15,995
1,686
126
Facebook down to $35, if you bitched about not being able to "get in on" the IPO, now's your chance!!!

ROFL
 

actuarial

Platinum Member
Jan 22, 2009
2,814
0
71
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.
 

feralkid

Lifer
Jan 28, 2002
16,617
4,708
136
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.


I believe that's the issue...where does growth come from?
 

Blackjack200

Lifer
May 28, 2007
15,995
1,686
126
I believe that's the issue...where does growth come from?

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.
 

dank69

Lifer
Oct 6, 2009
36,175
30,630
136
I believe that's the issue...where does growth come from?
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.
That and more girls are turning 13 every day...
 

Genx87

Lifer
Apr 8, 2002
41,091
513
126
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.

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.
 

IGBT

Lifer
Jul 16, 2001
17,961
140
106
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.
 

xBiffx

Diamond Member
Aug 22, 2011
8,232
2
0
Failbook is going to have to sue over trademark infringement if this gets any worse.
 

iGas

Diamond Member
Feb 7, 2009
6,240
1
0
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.
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.
 

nonameo

Diamond Member
Mar 13, 2006
5,902
2
76
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.

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.
 

Phokus

Lifer
Nov 20, 1999
22,994
779
126
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.

I heard somewhere that facebook doesn't make anywhere near as much as google per ad impression.
 

Craig234

Lifer
May 1, 2006
38,548
350
126
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.

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.
 

blankslate

Diamond Member
Jun 16, 2008
8,705
507
126
Facebook down to $35, if you bitched about not being able to "get in on" the IPO, now's your chance!!!

ROFL

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.
 

Abwx

Lifer
Apr 2, 2011
11,543
4,327
136
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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