Facebook Shares Yes/No?

Credit-Crunched

All its takes is one 'Anonymous' Sony style server take down and they will half over night, have people not learnt their lessons from the dot.com bubble.

Their actual physical assets are near nil, that for me is enough to walk away. If they had a physical asset backing i.e apple stores etc, to underpin the share price,then not so bad.

Ultimately what they have done, 'could' be replicated. For that reason 'I'm out'

Only way I would be looking at FB is to short them!

Gordon_the_Moron

I can't see them rocketing as I think the sites value has peaked or not far off. If someone came up with a better version of Facebook it could take a big hit too!

No from me.

rockitup

Credit-Crunched wrote: »

All its takes is one 'Anonymous' Sony style server take down and they will half over night, have people not learnt their lessons from the dot.com bubble.

Their actual physical assets are near nil, that for me is enough to walk away. If they had a physical asset backing i.e apple stores etc, to underpin the share price,then not so bad.

Ultimately what they have done, 'could' be replicated. For that reason 'I'm out'

Only way I would be looking at FB is to short them!

My feelings too, if Faceache do have a little surge in price on opening day, I will take a short on the next quarters bet with IG Index.

sabretoothtigger

Is the utility of FB increasing or decreasing. Dont exclude the growth possibilities of innovation.

In the ninities Apple nearly disappeared, they just werent special enough to beat the mass production of a PC.
Now we all recognise the value they add to their products in ease of use.

I imagine FB value has a similar dynamic, very frothy but advertising revenues amount to the billions so it is something real.


A good way to value a resource is in contrast to its competitors so I would say dont look at FB but rather the sector value, margins and potential premium. Google and WPP also is a UK share that is global advertising, are these online gadgets more efficent and less costly in delivering a message


We all know the tech boom was stupid (and still is?) but at its heart, none of us would be reading this if it didnt have a solid core of pure profit and benefit to society



http://i.imgur.com/oq78G.png

blinko

well IGINDEX have a spraed on the market cap close of play between 115 and 117 sothat should be interesting.

Tobe honest I can't see this share going anywhere but up. the amount of hype and publicity will simply draw buyers,

MoneySaverLog

I'd be prepared to short it ;-)

chewmylegoff

darkpool wrote: »

is it not selling at 27 times revenue?

Yes. The P/E is 100 I think.

No thanks!

calypso_rhapsody

Well there seems to be a consensus no and i have to agree that FB is too rich for me.

IronWolf wrote: »

People don't float companies unless its on favourable terms for them, which usually means you're getting the short end of the stick.

Back in the heady days of the late 80s/early 90s IPO management was what i did for a living (as one of those now much-vilified merchant bankers) and obviously pricing was a key part of that job! There was always an understanding that the issue price had to 'leave something in it for the next guy' ... and as in most cases the vendor shareholders were only selling a minority part (often a very small minority) of their overall holding it was in their interests to price the issue to ensure a premium on float.

So i am not sure that i agree with IronWolf - though of course things may have changed and Mark what'shisname will raise a shed load even if he sells a miniscule part of his holding ....

heathcote123

I tend to agree with everyone else here.. the money has already been made, and to me the sale indicates that they know this and want to cash out.

However, as everyone is so negative on it, so it will probably fly!

oldvicar

I'm out. ...