Facebook IPO

[e36bmw///]

nm

[Isaiah]

@ e36bmw///

Valuation in Facebook's case is based on their userbase unlike the other companies you listed. If that diminishes due to an unforeseen circumstance, the company's 'value' vaporizes.

[flipstah]

Originally posted by roopi


Facebook has been aquiring companies however they aren't really adding any revenue. They spent 1 billion on Instagram which has no revenue. That's quite the investment for nothing.

Some shit will go down with Instagram... I just don't know what.

Either that or he just liked buying a 'company' for the sake of buying.

[e36bmw///]

nm

[chkolny541]

anyone else get extreme pleasure watching this stock fizzle with no noticeable gain today

[acura_el]

Originally posted by chkolny541
anyone else get extreme pleasure watching this stock fizzle with no noticeable gain today

I did. Apparently Morgan Stanley spent over $2B propping up the stock so it wouldn't fall below $38 toward the end of the trading day.

It was overpriced and over-hyped; they really milked it for all it was worth and no upside was left for the retail investor once it actually started trading. A value of 107x earnings isn't anywhere near an appropriate valuation so it'll be interesting to see what Morgan Stanley does about this next week.

[cloud7]

Originally posted by acura_el


Apparently Morgan Stanley spent over $2B propping up the stock so it wouldn't fall below $38 toward the end of the trading day.

That was what the BNN folks were speculating when the share price went down to $38 from opening at $42 within 1/2 hour and then quickly went back up again. That more than the retail investors was what kept the price above $38 at the end of the day. Not touching FB... with the recent slump in the market, there are plenty of bargains out there.

[Supa Dexta]

Is this why zuckerberg got married a day after the stock hit? Assets before marriage are safe?

[flipstah]

Originally posted by Supa Dexta
Is this why zuckerberg got married a day after the stock hit? Assets before marriage are safe?

He wanted to celebrate. NO PRE-NUPS FOR ERRBODY!

[rage2]

Originally posted by Supa Dexta
Is this why zuckerberg got married a day after the stock hit? Assets before marriage are safe?

If he expected the $38 to be a stock's peak, then yes. Otherwise, all gains past $38.23 will be split 50/50 at this point. Common law is not recognized in California, so she gets nothing from before marriage.

She is Asian, so I can see him protecting himself from gold digging lol.

[rated_R]

Big drop in shares, 11% damn

[Maybelater]

lol byebye peoples money

[flipstah]

Originally posted by rated_R
Big drop in shares, 11% damn

Short!

[S-FLY]

Originally posted by S-FLY
If you guys think it's going down, short it.

Should have taken my own advice, $32.19 and falling today.

[rage2]

There's restrictions on shorting FB. Too many ppl were doing it and it triggered a failsafe.

[ercchry]

Originally posted by rage2
There's restrictions on shorting FB. Too many ppl were doing it and it triggered a failsafe.

i guess people have been using other companies that hold shares as proxies to short FB

http://www.theglobeandmail.com/globe...rticle2439751/

[spikerS]

now that I know what shorting is, If I knew how to actually go about doing it, It would have been a sure bet! Watching it tumble was a sure thing. I see it tumbling down to the mid to low 20's personally. Take that with a grain of salt though as I know very little about the stock market.

[roopi]

Originally posted by rage2
There's restrictions on shorting FB. Too many ppl were doing it and it triggered a failsafe.

I thought the only restriction was that they needed to wait 3 days until trades settled from the IPO day.

Was it actually possible to directly short FB on the first IPO day?

[barmanjay]

I'm not a stock guy (although my dad used to play stocks and commodoties)

My gut tells me it'll drop to $27ish, flatlineish, bump up to about $33ish.

But I know nothing,..

[rage2]

Originally posted by roopi
I thought the only restriction was that they needed to wait 3 days until trades settled from the IPO day.

Was it actually possible to directly short FB on the first IPO day?

This is on Monday's trade:

http://online.wsj.com/article/BT-CO-...22-709396.html

Originally posted by barmanjay
My gut tells me it'll drop to $27ish, flatlineish, bump up to about $33ish.

But I know nothing,..

Well the initial valuation of the IPO was at 27ish to 33ish, so you know enough haha.

I still think that's on the high side. When their next quarterly earnings come out indicating once again no improvement, they're going to tank again. They've levelled off on users, they need to increase revenue per user, and there's been no solid plans to do so.

Their valuation is pretty ridiculous. I don't think it's a $110b business. IMO it's a $35b business, with $11b or so in the bank thanks to the inflated IPO, which would put the stock price between $16-$17. Of course, with so many stay at home investing moms wanting a piece of the stock, it'll never drop that low. Emotional trading will continue to prop it up in the low 20's when the dust settles.

Of course, if Facebook figures out the magic formula for increasing revenue per user, without pissing off users, then everything changes. There's no indication of it at all. If anything, Facebook has said that users are moving mobile, and they haven't figured out how to monetize mobile.

My guess on the whole situation.