Anyone jumping in this morning? I like zynga as a better play on facebook.
I like FIO (again) for a better play also speculation too since XtremIO was just acquired.
I wasn't following 100% but I read the coming IPO is overvalued then soon after Facebook raised the price range. Was the reraise a retort to the story they were overvalued to begin?
So much for Zygna, haulted on Nasdaq but may get above 8.00 by the end of the day. Interesting that Bono made more today from Facebook (he owns 1.5%) than his entire career earnings from U2.
Either way I wouldn't touch this. And no, not just because of it's poor performance today. Facebook has gone from being the 'cool new thing' that everyone used...to being an annoying addiction for some, that mostly losers and those late to the party frequent (no, not everyone who uses facebook are losers, but you know what I mean). Anyone who still uses facebook must realize how 'friends' and users they know (the ones who actually have real lives and still leave their houses and DO THINGS) either rarely post anymore, or posts etc are completely lame and a waste of time. People have already tired of it and the actual 'anti' social tendancies it actually promotes, more and more as time goes on.
# of users for facebook is completely meaningless as so many are already pretty much vacant accounts. I expect it to go the way of myspace etc in the coming years. While the stock may still pop in the near future, not a chance I would touch it. An annoying dying medium....and even at 38 bucks a share and a market cap of over 100 BILLION dollars...ridiculously overvalued.
I'm going to super generalise here but when a particular stock has a lot of hype of coverage in the media as a fantastic opportunity it is no longer so. If you heard about it in the mainstream media, then you are too late.
Slightly different with an IPO but the hype aspect is much the same. Many people who no nothing about investing or stocks have been waiting anxiously for their opportunity to get rich of Facebook's IPO. I'm not saying it's a bust but all the hype is heavily over inflating it's value. It's not going to be the windfall that so many inexperienced investor's think it will be.
my 2 cents.
I actually own one share of WWE stock that I got as an xmas gift one year. Very cool gift that not only pays me $0.12USD dividend but also allows me to call in to the conference call every quarter. I've yet to do it, but I think it's a must at some point
I actually own one share of WWE stock that I got as an xmas gift one year. Very cool gift that not only pays me $0.12USD dividend but also allows me to call in to the conference call every quarter. I've yet to do it, but I think it's a must at some point
Actually quite an amazing stock considering. Very decent dividend and actually profitable. If you do ever call in the conference call make sure you ask a question using your best 'Macho Man' impersonation "Oh Yeaah":)
I actually own one share of WWE stock that I got as an xmas gift one year. Very cool gift that not only pays me $0.12USD dividend but also allows me to call in to the conference call every quarter. I've yet to do it, but I think it's a must at some point
That is quite cool!
Facebook has been quite profitable for me in the past, given it's a free service. I worked out a rough estimate today and figured I would have needed to flip $65,000 worth of opening shares fast to do the same, so I would actually buy one for scrap bookingish purposes only. I just need to figure out how, never actually purchased a stock.
The changes/controls have made it much less effective these days, unless you want to take an ad (which actually produces huge numbers of pageviews no doubt) but I am also getting very bored of it in general. I believe they allowed us to exploit the system for business, just long enough to convince us that it has tremendous marketing value.
I agree with everything in thread, you guys nailed some key points.
I still thought today was exciting in that if you had all your ducks in a row and could move very quickly with a truck of cash, one of the very unique points in history where a for a small window, there was virtually zero risk to turn a decent ROI on hype. But the portal has already closed...damn 1% win again Darb
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
And without bashing facebook too much... ....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.
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.
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.
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.
Comments
whats IPO?
(oops, you didn't mean what is an ipo?)
Opening at $42 as it begins trading on Nasdaq.
bought 49%.. All that Zuckerman would let me get..
I like FIO (again) for a better play also speculation too since XtremIO was just acquired.
I wasn't following 100% but I read the coming IPO is overvalued then soon after Facebook raised the price range. Was the reraise a retort to the story they were overvalued to begin?
# of users for facebook is completely meaningless as so many are already pretty much vacant accounts. I expect it to go the way of myspace etc in the coming years. While the stock may still pop in the near future, not a chance I would touch it. An annoying dying medium....and even at 38 bucks a share and a market cap of over 100 BILLION dollars...ridiculously overvalued.
Speaking of tablets...... ;-)
Slightly different with an IPO but the hype aspect is much the same. Many people who no nothing about investing or stocks have been waiting anxiously for their opportunity to get rich of Facebook's IPO. I'm not saying it's a bust but all the hype is heavily over inflating it's value. It's not going to be the windfall that so many inexperienced investor's think it will be.
my 2 cents.
I actually own one share of WWE stock that I got as an xmas gift one year. Very cool gift that not only pays me $0.12USD dividend but also allows me to call in to the conference call every quarter. I've yet to do it, but I think it's a must at some point
Actually quite an amazing stock considering. Very decent dividend and actually profitable. If you do ever call in the conference call make sure you ask a question using your best 'Macho Man' impersonation "Oh Yeaah":)
That is quite cool!
Facebook has been quite profitable for me in the past, given it's a free service. I worked out a rough estimate today and figured I would have needed to flip $65,000 worth of opening shares fast to do the same, so I would actually buy one for scrap bookingish purposes only. I just need to figure out how, never actually purchased a stock.
The changes/controls have made it much less effective these days, unless you want to take an ad (which actually produces huge numbers of pageviews no doubt) but I am also getting very bored of it in general. I believe they allowed us to exploit the system for business, just long enough to convince us that it has tremendous marketing value.
I agree with everything in thread, you guys nailed some key points.
I still thought today was exciting in that if you had all your ducks in a row and could move very quickly with a truck of cash, one of the very unique points in history where a for a small window, there was virtually zero risk to turn a decent ROI on hype. But the portal has already closed...damn 1% win again Darb
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
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.
They IPO'd this junk for one reason....so the boys could start cashing out before reality sets in....
And in related news:
Facebook IPO Furor: Feds Probing Deal Over Insider Bank Warnings | Business | TIME.com
I love lawsuits from people who only expect stocks to go one way.
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.