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Facebook IPO

Discussion in 'Sports and News' started by MisterCreosote, Feb 1, 2012.

Page 5 of 12
  1. Sic semper tyrannis

    Sic semper tyrannis Member

    U2's Bono reportedely stands to make about $1.5 billion on his investment group's $90 million investment three years ago.
     
    Sic semper tyrannis, May 18, 2012
    #49
  2. NoOneLikesUs

    NoOneLikesUs Active Member

    Take the plunge seems to be about the right term.
     
    NoOneLikesUs, May 18, 2012
    #50
  3. LongTimeListener

    LongTimeListener Well-Known Member

    Went up 13 percent right away but now is back at the opening price of $38.
     
    LongTimeListener, May 18, 2012
    #51
  4. Bob Cook

    Bob Cook Active Member

    So much for my prediction for how fast it'll pop. It went up to $43 initially, but slid a little bit. That means, for once, a tech company got its IPO priced right, and the maximum gains aren't going to underwriters who held down the price hoping for a gaudy-looking pop.
     
    Bob Cook, May 18, 2012
    #52
  5. The Big Ragu

    The Big Ragu Moderator Staff Member

    You can't put any stock into how a big-name IPO like this trades in the first few days. Demand, or lack of demand, can be based on hype. Eventually it will settle into its place.

    A few reasons why I would never touch this: Although, I don't touch any equities. ... 1) At the IPO valuation, it is trading at more than 20 times revenue. When Yahoo! went public (albeit at a less developed stage), it traded at a much smaller multiple than that. I want to say 3 times, but it may have been higher. In any case, that is a huge premium for a stock that you are buying based on potential of monetizing its 900 billion users -- not anything it has already done to derive revenue from those users. 2) Along those lines, I don't think Facebook is MySpace or anything like that. In the Internet space, you now have Google, Microsoft, Yahoo! (which is sinking) and Facebook firmly entrenched as the big boys. But in order for Facebook to be worth these valuations, it is going to have to sell an advertising model. And intuitively (although my instincts are frequently wrong about things like this), I wonder if they are going to piss off people and jeopardize the numbers they have -- their selling point. When you do a Google search, it is kind of natural when ads pop up. You searched for a restaurant, so it doesn't seem all that strange when some sponsored ads with restaurants pop up on the side of the screen. Facebook? People don't go on there seeking info. They go on there to communicate with friends. If that thing gets ad heavy, and it is done in a clumsy way, will it stick out like such a sore thumb that people will be turned off? To me that is the $1 million question.

    I'm not willing to bet on something at that high a valuation based on potential. But all the power to anyone who is.
     
    The Big Ragu, May 18, 2012
    #53
  6. LongTimeListener

    LongTimeListener Well-Known Member

    And I was just going to post that this is the new Google. Damn you Ragu and your historical facts! :)
     
    LongTimeListener, May 18, 2012
    #54
  7. TigerVols

    TigerVols Well-Known Member

    The only thing that interests me less than #Kardashian is #FBIPO. Hipster millionaires? Bleh.
     
    TigerVols, May 18, 2012
    #55
  8. Brian

    Brian Well-Known Member

    One man will now control the world's supply of cowboy hats, yellow-framed sunglasses and smugness.
     
    Brian, May 18, 2012
    #56
  9. Michael_ Gee

    Michael_ Gee Well-Known Member

    Ragu, the advertising trades I read in my day job all are consumed with ferocious debate on whether Facebook users will accept lots of advertising or not. They're the alleged experts, and they don't know. So I think I'll keep my money in my pocket here. Also, the social media space is getting crowded with very popular companies, Twitter, Pinterest, etc. Who's to say one of them doesn't figure out the advertising model before Zuckerberg does?
     
    Michael_ Gee, May 18, 2012
    #57
  10. Stitch

    Stitch Active Member

    Why did MySpace fail? Was it the gaudy design, coupled with Facebook's slim design at the time?
     
    Stitch, May 18, 2012
    #58
  11. Brian

    Brian Well-Known Member

    That and Facebook had a news feed, which MySpace took years to adopt. That changed it from something you checked once a day to something you checked 100 times a day. And don't underestimate how ubiquitous Farmville was at one point.

    I was reading this on Longform.org a few weeks ago. it's a pretty good summation of what went wrong.
    http://www.reuters.com/assets/print?aid=USTRE7364G420110407
     
    Brian, May 18, 2012
    #59
  12. Mystery Meat II

    Mystery Meat II Well-Known Member

    IPO? More like I PO'd that I bought this shitty stock!

    (ha ha, just kidding, i have no money)
     
    Mystery Meat II, May 18, 2012
    #60
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