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How much would you pay for Facebook stock?

Discussion in 'Anything goes' started by mustangj17, Jun 13, 2011.

  1. mustangj17

    mustangj17 Active Member

    I'm not sure how much I would pay, but I always think of stocks like google and say "if only".

  2. TigerVols

    TigerVols Well-Known Member

    I'd pay about 1/2 of what Google or Apple is going for on the day of the FB IPO.

    Google and Apple are both category killers like FB is, but they also have huge amounts of capital reserves and have tons of R&D for killer apps (no pun intended) coming down the pike.

    What does FB actually have? A niche (albeit huge), a category-killer name, and a potentially deadly reliance on outside advertisers to stay afloat.
  3. Buck

    Buck Well-Known Member

    Not much. Despite the marketing talk of the past decade, brand position does not automatically equal revenue or true valuation.
  4. Baron Scicluna

    Baron Scicluna Well-Known Member

    Heck, I wish I'd bought Apple Computer stock in 2003. It was $6 a share then.

    Now, it's $326 a share.
  5. Mizzougrad96

    Mizzougrad96 Active Member

    Facebook is one that scares me. It's huge now, but who's to say it won't be completely gone in a few years.

    I could see buying it the day it comes out and then selling pretty quickly, but I don't see it doing well long term.
  6. JonnyD

    JonnyD Member

    What does FB actually have? Between $2 billion and $4 billion in ad revenue for 2011.
  7. Freelance Hack

    Freelance Hack Active Member

    Are we talking Farmville bucks or actual money?
  8. JonnyD

    JonnyD Member

    Actual money. I'm stunned at how well Facebook has been able to monetize in the last two years.
  9. TigerVols

    TigerVols Well-Known Member

    Past performance does not guarantee future results.

    Let's compare FB to, say, ESPN. Chances are, nothing is going to come around in the next 10 years or so that will completely replace ESPN in the minds of consumers (unfortunately, perhaps).

    But there's a very good chance that's exactly what will happen to FB. See Space, My and Online, America for proof.
  10. JonnyD

    JonnyD Member

    They belong somewhere in between those two. They've already lasted longer than MySpace's heyday, and they have actual significant revenue. But they are nowhere near AOL.
  11. EStreetJoe

    EStreetJoe Well-Known Member

    There's a good chance Facebook is peaking or has peaked.
    It lost 6 million members in the month of May.
    Facebook blames the methodology used in obtaining that number for it being so high. A "social media expert" on CNN attributes much of it to college students graduating and deleting their accounts so prospective employers don't see drunken party pictures of them and to parents of minors cutting off their kids' Facebook accounts. He also says that close to half the people in the US already have a Facebook account, so Facebook will have to look overseas to grow.
    If you want to watch the story (haven't seen a text version) you can view it here:
  12. mustangj17

    mustangj17 Active Member

    I read a different report yesterday that said they will probably start increasing again and should get more of the older crowd on the site. Something like up to 152 million users in the US.

    Anyway, here's another IPO... can't believe how many of these online companies are getting stock now.

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