Facebook IPO

[Denny Crane]

Anyone following the news?

It's down 33% from its first day high of $45, and there's a lot of talk the stock is really worth $9. There's also a lot of finger pointing and investigating going on.

Personally, I think the stock could be huge, regardless of whether the site can thrive on advertising revenues. They just raised $100B from the offering, and it remains to be seen what they do with the money.

If they spend it on operations, it's going to be a disaster. If they buy businesses that are generating revenues with the money, it could be hugely successful and the ad revenues won't mean _everything_.

They could easily buy Yahoo! and AOL and have most of that money left over. Both those companies are ad revenue and service driven and have clearly seen their better days. But $100B is a nice fund to work with for turning those companies around.

Yahoo! and AOL would be just two of many companies possible. They are in position to do an LBO of a company like Apple or Exxon. Sheesh.

 

[3RA1N1AC]

MZ has lost around 7 billion dollars in the last 10 days lol

 

[Denny Crane]

MZ has lost around 7 billion dollars in the last 10 days lol

On paper. He's really gained tens of $billions, ya know?

 

[THE HCP]

Ah Shit! My next door neighbor bought $20,000 of Facebook stock!!!! I better go check on him.

 

[3RA1N1AC]

On paper. He's really gained tens of $billions, ya know?

yeah yeah

his stock was worth 23 billion, now iits worth 15 billion, it drops down to 9 bucks a share hes got 4.5 billion worth of stock, although he did sell around a billion worth of his own stock in the ipo

 

[3RA1N1AC]

and facebook itself raised nowhere near 100 billion, ive seen figures around 7 billion

 

[PapaG]

Anyone following the news?

It's down 33% from its first day high of $45, and there's a lot of talk the stock is really worth $9. There's also a lot of finger pointing and investigating going on.

Personally, I think the stock could be huge, regardless of whether the site can thrive on advertising revenues. They just raised $100B from the offering, and it remains to be seen what they do with the money.

If they spend it on operations, it's going to be a disaster. If they buy businesses that are generating revenues with the money, it could be hugely successful and the ad revenues won't mean _everything_.

They could easily buy Yahoo! and AOL and have most of that money left over. Both those companies are ad revenue and service driven and have clearly seen their better days. But $100B is a nice fund to work with for turning those companies around.

Yahoo! and AOL would be just two of many companies possible. They are in position to do an LBO of a company like Apple or Exxon. Sheesh.

How is the stock "huge" in potential? It's a social networking site that can't advertise on smart phones, which looking at my FB online feed now, has 13 out of 20 friends currently connect live to FB on it.

 

[PapaG]

Ah Shit! My next door neighbor bought $20,000 of Facebook stock!!!! I better go check on him.

What an idiot. Seriously. We went through this before in the late '90s with internet overvaluation. This was a money grab from Morgan Stanley, Zuckerberg, other FB execs, and some major political players.

It's a fucking Ponzi scheme.

 

[THE HCP]

He has already lost what....... 6 grand?

 

[PapaG]

He has already lost what....... 6 grand?

Pretty much. Zuckerburg just dumped 30.2 million shares this afternoon.

It's will settle at around $14 or so, IMO, by the end of the year. I just don't see the demand for that stock. Hell, you and I post much more often here than we ever do on Facebook.

 

[MARIS61]

When is S2 going public?

 

[THE HCP]

Denny already makes so much off us....... why would he take it public?

 

[SecretAgentMan]

If anyone whose interested in the stock market and gets bored you should peruse my dad's website: www.didalus.com

He's particularly proud of his 2008 predictions.

 

[Denny Crane]

and facebook itself raised nowhere near 100 billion, ive seen figures around 7 billion

The IPO raised $16B, according to USA Today, and set the market cap of the company at over $100B.

The $16B is more than enough to buy every franchise in the NBA. The $100B is what would be used to figure for mergers and LBOs.

 

[Denny Crane]

What an idiot. Seriously. We went through this before in the late '90s with internet overvaluation. This was a money grab from Morgan Stanley, Zuckerberg, other FB execs, and some major political players.

It's a fucking Ponzi scheme.

It's not a Ponzi scheme. Money grab?

http://seekingalpha.com/article/604401-how-the-media-is-wrong-about-facebook-s-ipo

The banks will make an astonishing $176 million on the IPO for doing arguably not a lot. That said, even though the banks will collect a lot of money, Facebook negotiated them down on fees. Historically, bankers have gotten a 7% fee for tech IPOs. Facebook paid just over 1%.

 

[Eastoff]

I don't know how anyone could be dumb enough to ignore all the facts about how much the company is worth and how much profit they would have to make for the stocks to be accurately valued.

 

[Denny Crane]

Don't get me wrong. I am quite sure that if Facebook sits on that pile of cash, watching it dwindle as losses mount, that they'll crash and burn.

You can't ignore that pile of cash and what it might be used for. If they start buying companies with the money, they'll be able to show those companies' numbers on their books.

Hell, with the way the economy has been run, they could buy gold with the money and sell it for profit.

 

[Eastoff]

Don't get me wrong. I am quite sure that if Facebook sits on that pile of cash, watching it dwindle as losses mount, that they'll crash and burn.

You can't ignore that pile of cash and what it might be used for. If they start buying companies with the money, they'll be able to show those companies' numbers on their books.

Hell, with the way the economy has been run, they could buy gold with the money and sell it for profit.

My understanding is that a lot of companies are sitting on cash. Is this not true?

 

[blazerboy30]

Anyone following the news?

It's down 33% from its first day high of $45, and there's a lot of talk the stock is really worth $9. There's also a lot of finger pointing and investigating going on.

Personally, I think the stock could be huge, regardless of whether the site can thrive on advertising revenues. They just raised $100B from the offering, and it remains to be seen what they do with the money.

If they spend it on operations, it's going to be a disaster. If they buy businesses that are generating revenues with the money, it could be hugely successful and the ad revenues won't mean _everything_.

They could easily buy Yahoo! and AOL and have most of that money left over. Both those companies are ad revenue and service driven and have clearly seen their better days. But $100B is a nice fund to work with for turning those companies around.

Yahoo! and AOL would be just two of many companies possible. They are in position to do an LBO of a company like Apple or Exxon. Sheesh.

They didn't raise $100billion from the IPO. Not even close.

A P/E ratio of about 100 isn't completely insane. Amazon P/E=175. Linked-in P/E=621. However, the biggest red flag is the fact that last quarter revenue was actually DOWN. A company with a P/E ratio should be putting up revenue growth of over 100%, but instead they actually had decreased growth. That is the worst metric of all the numbers being thrown out there.

 

[blazerboy30]

I don't know how anyone could be dumb enough to ignore all the facts about how much the company is worth and how much profit they would have to make for the stocks to be accurately valued.

You haven't been trading stocks much, have you?

Where do you think FB stock should be priced today?

 

[SlyPokerDog]

Facebook is now too big to fail and qualifies for federal bailouts.

 

[3RA1N1AC]

The IPO raised $16B, according to USA Today, and set the market cap of the company at over $100B.

The $16B is more than enough to buy every franchise in the NBA. The $100B is what would be used to figure for mergers and LBOs.

http://www.buzzfeed.com/tommywilhelm/so-who-actually-got-rich-today

says otherwise, of course, the internet has proven me wrong before

looks like all sales combined to 16B, and facebook sold less than 7B

 

[Further]

I'm confused, didn't the stock initial price around $38 and now it's around $32 a share? I know that's a drop, but not some incredible crash or anyting, about a %15 drop. Or am I wrong on my facts?

 

[Eastoff]

You haven't been trading stocks much, have you?

Where do you think FB stock should be priced today?

Nope never, I just heard that a ratio related to company earnings was much higher than a conventionally safe investment.

 

[Eastoff]

I'm confused, didn't the stock initial price around $38 and now it's around $32 a share? I know that's a drop, but not some incredible crash or anyting, about a %15 drop. Or am I wrong on my facts?

taht's a drop in 3 business days.

 

[Natebishop3]

Now they're investigating FB and Zuckerberg LOL

 

[Natebishop3]

Regulators are now looking into the possibility that Facebook's Wall Street investment banks may have tipped off some clients that Facebook wasn't necessarily a great buy or worth the hype it was receiving, according to reports Wednesday from Reuters and several other news organizations.

http://news.blogs.cnn.com/2012/05/2...umpy-start-just-got-a-little-worse/?hpt=hp_t1

 

[PapaG]

Flat-out insider trading. Hope this smug fucker Zuckerberg enjoys prison for defrauding shareholders.

Mark Zuckerberg and leading Facebook investors cashed out millions of shares before the price dropped off a cliff, according to company filings. It was also revealed that a company executive issued a warning days before the Initial Public Offering that Facebook's revenues are lower than expected, information that would have likely dropped the opening price of the stock. The new reports are already raising questions about whether top investors profited from the IPO at the expense of smaller buyers.

On Wednesday shareholders filed a lawsuit against Facebook and the banks behind the company's stock, Morgan Stanley and Goldman Sachs.
Additionally, both the Securities and Exchange Commission and the Financial Industry Regulatory Authority have begun looking into the matter.
The US Senate Banking Committee has also launched an inquiry and the state of Massachusetts has subpenaed Morgan Stanley, demanding answers.

Facebook stock rose 3.3 percent in trading on Wednesday, rising to $32 a share.

However, a new analysis said the stock could fall to as low as $9.59.

That's a far cry from the $37.58 that Zuckerberg fetched for 30.2 million shares he unloaded on Friday. The founder of the social networking website made $1.13billion on the sale.


Read more: http://www.dailymail.co.uk/news/art...ares-BEFORE-stock-cratered.html#ixzz1vjStLTex

 

[MickZagger]

Flat-out insider trading. Hope this smug fucker Zuckerberg enjoys prison for defrauding shareholders.

So much hatred, so much vitriol, for the guy who played a good part in ousting your identity to a Blazer fan community.

 

[3RA1N1AC]

zuck sold that stock just to pay his 900 million dollar tax bill, like 170 of it to the state of california, not a bad windfall for the state coffers