Facebook

[yon Beast]

Facebook announced today that its initial public offering of common stock will be priced at $38 a share, valuing the company at $104 billion, the largest IPO for a U.S. tech company, raising $16 billion.

...on Wednesday Facebook increased the number of shares to be sold at the market debut by 25 percent. Trading is expected to open at 11 a.m. Friday on the Nasdaq.
The company is offering 421.2 million shares of common A stock, which includes 180 million new shares that will be sold by the company and 241.2 million shares sold by existing shareholders such as early investors and Facebook’s founders.

http://abcnews.go.com/blogs/business...st-tech-offer/

[StockTrader]

Pretty exciting for us in the tech world. Of course, we're also all holding our breath, praying that this isn't 1999 all over again

Nick

[SiteWolf]

ah hell, when the JFSPN IPO is released, it'll value the company at twice that



I hope people aren't thinking this is a great investment, tho...the 1%ers already got their shares locked in and some will get dumped for quick profit, severely limiting profit for the rest of us.........IMO of course

[yon Beast]

things could have gone smoother.

http://www.foxbusiness.com/industrie...ding-glitches/

[SayOw]

It will be interesting to me, but not unexpected, when I read about Facebook going bankrupt sometime in the future...

I am still baffled about how these companies with close to no tangible assets can be worth much of anything...but it is only a matter of time before they truly aren't.

I see that Facebook has already dropped to around $31 a share and some banks have lowered their forecasts and think Facebook should be valued at less than $15 a share right now.

[SayOw]

Originally Posted by SayOw

It will be interesting to me, but not unexpected, when I read about Facebook going bankrupt sometime in the future...

I am still baffled about how these companies with close to no tangible assets can be worth much of anything...but it is only a matter of time before they truly aren't.

I see that Facebook has already dropped to around $31 a share and some banks have lowered their forecasts and think Facebook should be valued at less than $15 a share right now.

Shares of Facebook fell to $19 - half of it's IPO.

Story here.

[SayOw]

Facebook Inc. slumped to a record low on Friday after a pair of brokers slashed their price targets on the stock, citing the combined weight of massive share lockups as well as signs of a weakening advertising business at the social network.

In morning trades, Facebook (US:FB) shares fell more than 4% to $18.31. This represented an all-time low for a stock that has steadily been losing ground since its high-profile IPO in May, with the company’s market value now less than half the level set by its debut price of $38 per share.

Full story here.

[SiteWolf]

They were always grossly overvalued based on expected future earnings. Even reaching near $4bil in (supposed) revenue last year shouldn't have resulted in a 12 figure valuation, but a lot of it was unrealistically based on comparison to 2010 revenues and the percentage increase.

It's like when Nick and I put projections together here for investors. Percentage increases are realistically steep in early years, but can level off quickly once a business is established.

If Facebook had 400mil revenue in 2010 and 4bil in 2011, it's not logical to assume they'll reach 40bil in 2012, after all....

[SayOw]

In addition to what da beast linked too, here's another interesting article on the Facebook IPO and some shady goings on with it all...

Best quote from the article, imo,

...the "smart money," in other words, was cashing out.

[SiteWolf]

yup, let the 1%ers in early to buy up large chunks pre-IPO, then watch 'em dump large chunks for quick profit after the rest of us drive the price up a bit......large volumes of shares traded, Facebook still got their money, 1%ers profit from the little guys who, as usual, are left holding the short straws.

You wait, too....there'll be Facebook employees who earned stock options as part of their compensation and will have been barred from selling any for a certain period...and by the time they can, they won't be getting near the compensation they should have.

[SayOw]

Latest on the Facebook fallout ... lawsuits and regulators are lining up...

The shares are now trading at $31.78, leaving the company that boasts a user base including half the American population is worth $4 bn less than it was six days ago, and earning it a new moniker: Fadebook.

[SiteWolf]

and the movie sequel, The Anti-Social Network

[SiteWolf]

people do misinterpret what freedom of speech actually is....if you come to a site I own it's no different than you coming to a physical store location I own- I have the right to serve you and set my own code of ethics..your option isn't to tell me I don't have the right, your option is to accept it or don't do business with me........it's no different than the comment that freedom of speech doesn't give you the right to yell fire in a crowded theater. Now, I'm a business moron if I set rules that cause a lot of people to opt to NOT do business with me...but it's still my right.

Facebook veered way off the course they originally set themselves on years ago when they started realizing how much information about their users was being just handed to them....and they started taking tens, hundreds of millions from 'investors' who were interested only in gaining access to that information. I put 'quotes' around investors because...most of that money was coming from companies who didn't care one aiota about Facebook's company health, they only wanted to exploit the available information for marketing purposes.

[SayOw]

Originally Posted by SiteWolf

...and they started taking tens, hundreds of millions from 'investors' who were interested only in gaining access to that information. I put 'quotes' around investors because...most of that money was coming from companies who didn't care one aiota about Facebook's company health, they only wanted to exploit the available information for marketing purposes.

And this is really where I think Facebook is at right now...

It is the one piece of technology that women and teens in America gravitated towards in mass. For this demographic, privacy and security are not a high priority and that is why Facebook has become what it has...

The number of third party sites that data mine from Facebook is incredible. Signing up to Facebook and even revealing some of the smallest details about your past opens up a whole window of opportunity for those looking to profit off of you...

[-mmm-]

Originally Posted by SayOw

And this is really where I think Facebook is at right now...

It is the one piece of technology that women and teens in America gravitated towards in mass. For this demographic, privacy and security are not a high priority and that is why Facebook has become what it has...

The number of third party sites that data mine from Facebook is incredible. Signing up to Facebook and even revealing some of the smallest details about your past opens up a whole window of opportunity for those looking to profit off of you...

Where you mentioned teens reminded me of something I read recently:

http://business.time.com/2013/03/08/...eens-think-so/