SuperNed I've been comparing valuations with another couple of mammoths from a price to earnings standpoint. If Facebook was given the same multiple as Google (18X), a Facebook share is worth about 7 bucks. If Facebook was given the same multiple as Apple (13x), a Facebook share is worth about 5 bucks. And let's just say I think the best years of facebook are behind it, as I discussed earlier. It's getting less and less cool, and now bordering on many people who still frequent it being embarrassed. If it wasn't so hyped and unpredictable it's probably the best short of the century. Talk about bloated valuation :o
SuperNed And without bashing facebook too much... :p ....think of it this way..... Facebook is currently trading at a very high multiple based on it's current earnings....meaning they are going to need to increase earnings significantly or the stock will drop. Imagine a 'facebook' that is trying to constantly make money off it's users with new fees or over the top excess advertising etc. You think people are abandoning it now...you aint seen nothing yet. Many years into the 'model' and they still haven't figured out how to make big money....that's a big problem.
SuperNed Facebook current price $33.61...down almost 5 bucks >:D They IPO'd this junk for one reason....so the boys could start cashing out before reality sets in....
SuperNed Down to $30.80 after hours today....over 7 bucks less than it IPO'd at. Yep, the rats are abandoning ship.....lost 20% of it's 'value' in 2 days...LOL
JimmyHo Waiting until the option trading starts next week, then it will be a wild ride for sure. You really had to have balls of steel to short facebook from day 1. Really bad timing for a public offering the last couple weeks.
Hobbes Ya, if I had the $ I'd have shorted it. And in related news: Facebook IPO Furor: Feds Probing Deal Over Insider Bank Warnings | Business | TIME.com [LEFT]Facebook’s Wall Street investment banks warned top clients of new doubts about the social network’s financial prospects just days before the company’s IPO, according to a series of reports that emerged Tuesday. After receiving briefings from Facebook executives, analysts at the banks lowered their financial forecasts for big institutional clients, some of whom scaled back plans to buy Facebook stock, even as the banks raised the IPO price and number of shares amid a frenzy of hype. [/LEFT]
800OVER Milo;318073 wrote. . . and the first lawsuits are coming down now. LOL stock markets. I love lawsuits from people who only expect stocks to go one way.
Milo To be fair, I think they are based on the re-evaluations done in the final week that were only passed out to certain clients. But, yeah, I was thinking the same thing until I heard the news report.
trigs pretty sure the stocks dropped as soon as zucker announced his marriage. i thought wives usually waited until after the divorce to screw you over.
literation SuperNed;317930 wroteDown to $30.80 after hours today....over 7 bucks less than it IPO'd at. Yep, the rats are abandoning ship.....lost 20% of it's 'value' in 2 days...LOL http://www.bloomberg.com/video/93671035-facebook-ipo-based-on-hot-air-tavakoli-says.html Posting with my phone so guess video isn't embedded this way. Click the link.
GTA Poker below $28 I think...not sure who thought this would be a good investment years after it peaked in popularity
GTA Poker trigs;318211 wrotepretty sure the stocks dropped as soon as zucker announced his marriage. i thought wives usually waited until after the divorce to screw you over. high five.jpg?
SuperNed FB just reported earnings....after recovering half decently this month...it's tanking again...down to $23.91 after hours....
SuperNed I've never traded options....never looked into them enough to fully understand them, but really should. I would imagine a year out FB will look like a ski hill....with rises between earnings as the machine tries to prop it back up....followed by reality (earnings) driving it down further each time.