Facebook falls flat in public debut

[iGGz]

//

 

[psi2941]

Even at $33.50, the stock is still commanding a huge premium, IHMO. But then again, I have very little financial interest in companies that don't actually produce anything.

u also hit the nail on the head, facebook brings no productivity its just a big waste of time. at least google, Microsoft, orcale, apple brings increase productivity on some levels. (well u can't say that for apple).

Also its "advertisement" strategy is a joke.
at least when i use google, and search "car" it tries shows me advertisement of cool cheap cars. or if i search cell phone, u see like 5 advertisement from the top 5 cell phone re sellers. as for facebook, its totally random, i'm in the mood to cyber stalk this hot chick and it gives me an advertisement for an online college. When facebook KNOWS i already have a mathematics degree. Like WTF?

facebook just fails at delivering advertisement to the targeted customer the business wants. If i was a business manager i would never pay facebook for ads.

First of all, I never said it wasn't overpriced. Second, it's creepy when you say little boy like that. Third, I wouldn't buy Facebook stock because I'm not an idiot.

And BTW, u shuld not B any tipe of editor or righter.

i can't say the word i really wanted to say because i got a warning, what i really wanted to say was your a *%$#$% %$^@!

i hate english in general

I would call being valued at $100Billion and staying steady at the IPO price pretty good

IPO price pretty good?

 

[row333au]

Nothing has changed in regards to controling where the company goes. Zuckerberg still owns the majority of the voting shares. What he says, goes.

I beg to differ.....

For a private company to decide in including the public to have shares (ownership) in order to raise their expansion capital...... that means to shore up and expand equity support that enables them to access cheaper capital (the money paid by investors for issued shares either goes directly to the company or money passes between investors); and all of those monies that the company gets are for enabling them to create multiple financing opportunities: expansion of their core business, equity, convertible debt, cheaper bank loans, etc. which is about facilitating acquisitions..... But in return, the public needs an ongoing requirement to disclose financial and business information that the public dissemination of information which may be useful to competitors, suppliers and customers..... And this is subject of what’s it is to becoming a publicly traded enterprise.... investment banking firm acting in the capacity of an underwriter to help them correctly assess the value of their shares

So regardless of majority shares or whoever has management direction domination is still subject to public and consumer backlash even worst for a public listed company whereby its capitalization and worth value of assets are tied in with the public, whereby advertisers, marketing, markets and payments for shares and company values legal agreements will decide wins and losses

IE: Fox shares and Rupert Murdoch with the hacking scandals rocked the directors management under the behest of their public shares and customers backlash.....

 

[Pauls' Revere]

http://adblockplus.org/ No ads on facebook, ever. Or pretty much anywhere for that matter.

Plus http://www.ghostery.com/

+1

 

[iGGz]

//

 

[ctiger2]

Denninger says FB real valuation is in the $2-$4 range. Might be a great short.

 

[Dforkus]

I was the quintessential Apple hater. I ran windows and linux at home (actually I still do on one machine), and use linux at work. I'm not an admin, but I know my way around the command line and tools like vi, grep, find, ps, ssh, bash scripts and most of the other unix tools we love (most of which you can actually use on a mac because of its unix roots).

Like I said, I engaged in a lot of the "just toys for hipsters" sanctimony, then my wife wanted an tablet, and we got her an IPad. Sorry, nothing comes close, the Kindle fire is a friggin joke, and the Android tabs, while being extremely powerful, many just as fast, or even faster than the iPad, are a nightmare of bad design. The next week I bought 30 shares of their stock, and a macbook pro, I've never looked back, and the stock has more than paid for my purchases.

That's the thing Apple seems to get, that the rest of the world is now only, begrudgingly, getting.. The design informs the technology, NOT the other way round. Sometimes there obsession with simple/clean designs does seem a little overbearing, there are times when I've wished for a USB slot in the iPad, but it pains me to say this, but once you start doing things their way, you realize that a LOT of thought has been put into how they have done it. This attention to detail and design seems to permeate every thing they do..

To say their stuff is just "toys" is simply not true and/or misses the point entirely. If there is one thing I'd like to see them do is make a run at the corporate IT space. Anybody who has used windows desktop machine, managed by a large corporate IT support structure, with all its attendent bloat-ware, needed to keep the network stable knows that pain.

From a financial perspective, again, they've got 112 billion in the bank, and growing. They really don't need to sell another computer, ipad, or iPhone ever. A radical but arguable approach at this point would be to fire every employee, and become another berkshire hathaway, rewarding shareholders with the interest.

 

[Seraphim]

Barely above 30$ now.

Lol.

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/05-2/20120522_EOD3.png

 

[psi2941]

Barely above 30$ now.

Lol.

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/05-2/20120522_EOD3.png

well since we all know where its headed, let guess from one month from now where its going to be. everyone place ur bets! All bets are for rep points and target date is June 22,2012.
my guess is 10 bucks.

 

[Brian4Liberty]

well since we all know where its headed, let guess from one month from now where its going to be. everyone place ur bets! All bets are for rep points and target date is June 22,2012.
my guess is 10 bucks.

Some pundits have stated they expect it to hit $2.

 

[furface]

Are insiders buying this morning because they don't want to go to jail? Yesterday I read about 3 lawsuits and 2 SEC officials talking about investigations. Is there such a thing as "panic buying?"

 

[furface]

Can someone explain to me this? It's being called a $16 billion IPO, but I read that FB comes out with about $2 billion in cash. Where does the other $14 billion go? Is that insiders and the VC company selling its shares? The $16 billion isn't based on overall valuation because that's much higher than $16 billion.

 

[gerryb]

Can someone explain to me this? It's being called a $16 billion IPO, but I read that FB comes out with about $2 billion in cash. Where does the other $14 billion go? Is that insiders and the VC company selling its shares? The $16 billion isn't based on overall valuation because that's much higher than $16 billion.

it's how much the public paid for their shares

 

[Zippyjuan]

So now that the euphoria is wearing off, how is it doing? As of now, it is at $32 a share- down 16% from the release price of $38 a share. Volume has been dropping a lot too (this is not unusual here).

 

[furface]

Can someone explain to me this? It's being called a $16 billion IPO, but I read that FB comes out with about $2 billion in cash. Where does the other $14 billion go? Is that insiders and the VC company selling its shares? The $16 billion isn't based on overall valuation because that's much higher than $16 billion.

Actually I think I was wrong about the $2 billion in cash. I think that was from a long time ago. FB should have at least $14 billion in cash now. The balance would be going to underwriting costs & it seems individual shareholders. It appears that a lot of the cash may be going to insiders.

http://money.cnn.com/2012/05/03/technology/facebook-ipo-zuckerberg/?source=cnn_bin

Does it give you much confidence when insiders were planning on cashing out before the IPO even happened?

 

[Zippyjuan]

There are usually a lot of people who try to get in on IPOs and hope to turn around their shares when the price (often but not in this case) bumps after they become available to the public.

 

[furface]

Ignorant people saying stupid things about stocks.

http://www.bloomberg.com/news/2012-...means-morgan-stanley-gets-blame-for-flop.html

“The market would have probably greedily absorbed $5 billion or $10 billion of stock,” Pachter said. “It’s solely the misjudging of demand.”

Demand? "Demand" is a term used used for consumable goods. A liquid asset like a stock doesn't have "demand." It has an intrinsic value which is related to its future profits, not "demand." The bar seems pretty low to be a "securities analyst" these days.

“The real growth is in delivering more relevant ads and charging more for them.”

Another idiot comment. If there were a better way to monetize their user base, FB has had a lot of time to already do it. If they could raise advertizing rates they would have already done that as well. Why do they need $16 billion to get more "relevant ads" and raise rates? People are already pissed off at their login walls, so they're going to have a hard time tracking people anymore.

My son told me he has 70 friends on FB. Will any ad targeting him be valuable? I don't think so. I won't let him pay to play any of those stupid games either.

You're better off buying a virtual pig in Farmville than buying FB stock.

Everybody's deathly afraid of internet advertising. Even Google is. That's why they're investing in things like energy companies and hardware companies like Motorola. There are plenty of companies going after them in a big way. For instance I've found this site http://gibiru.com/ delivers way better results and they're anonymous. FB is even much more vulnerable in the social media space because of their login/tracking structure.

I suppose FB could use the cash to buy other companies, but at those P/E ratios you're talking a huge premium just for giving someone else your money to invest.

 

[Zippyjuan]

Ignorant people saying stupid things about stocks.

Yes, sometimes they do.

The "intrinsic value" doen't exist for stocks- they too are based on supply and demand. The price of the Facebook IPO was 100 times earnings- meaning it would take the company 100 years at current revenue rates to take in that much money. A more typical valuation is closer to 20 times earnings. The price of the shares are based on bids- asking and selling prices based on supply and demand ALONG WITH the perceived value of the company (each buyer and seller has their own judgement of what that future value will be). If I think the value of the company is going to improve, I am going to want to buy more shares and be willing to pay more for them. If I think it will not improve I may want to sell my shares- even at a lower price than it is currently asking and will demand less (even negative numbers of) shares.

If Warren Buffet decides to dump a million shares of say ATT, that large supply of stocks hitting the market will drive down the price of ATT shares- even though the value of the company did not change a bit.

It is curious to see a claim that stocks have an "intrinsic value" and follow that up with what seems to me to be an argument that the price of Facebook does not follow that "intrinsic value". I would agree that the FB IPO is highly over-priced. Demand will fall and so will the price (as I pointed out, it is already down 16% from the opening price).

 

[jmdrake]

Ads online don't work the same way as Ads on TV. Online ads are based on CTR (click through rate) and people pay when ads are clicked. Yes companies offer impression pricing but they don't convert well when compared to ads that are clicked on. Since only 50% of Facebook users are clicking on ads, it's a big problem.

As of March 2012, Facebook has around 901 million users. That means 450 million users never click on ads. Can you imagine the cost to manage 450 million users?

And how many of those 450 million users hardly ever log in?

 

[HOLLYWOOD]

Here's your so-called Business Channels providing you the information you need to make your investments.

PS: It's from 8-9 days ago

Ridiculous reporting? for 8 year olds? PS: I've been to that Crown Plaza off of El Camino in P.A.

http://video.foxbusiness.com/v/1634285104001