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Facebook worth $104BN?
Comments
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It has to be overpriced, there's nowt to it.
But, surely there'll be a rush in today? Irrational exuberance and all that!“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0 -
It's the greatest shorting opportunity since the pound in 1992 I reckon*.
Facebook Price:Earnings ratio = 104
Google Price:Earnings ration = 19
Facebook is 5.5x more expensive than Google on the most basic measure of share price.
*DYOR.
I think you're right. The very fact they are offering more stock up for sale simply proves this. I'll bet Zuckerberg is rubbing his hands with glee thinking, "oh the muppets, oh the muppets".
That having been said, I have no doubt that the value will increase, before people realise its not living up to the hype.
Edit: Generali - are you about to short?0 -
I wouldn't short until the hype is at it's maximum.
The fact that GS are selling more of their shares should be a warning.The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0 -
Edit: Generali - are you about to short?
No for contractual reasons.
My guess is that there'll be a bit of a bounce in price after the float and a slow, steady decline in the share price.
Ultimately, my 7 y/o isn't going to want to hang out with his Grandma when he's 14 on Facebook any more than he wants to hang out with her at the shopping centre or colostomy bag exchange clinic. That's the long term kicker.
Shorter term it's going to be a cheap short because they don't pay a dividend. If you short a stock that pays a dividend then you have to make good on the dividend to the buyer of the stock.0 -
When your mum is on Facebook, you get the heck out pronto. It is a bubble - remember MySpace was the mutts nuts worldchanger until Facebook. MySpace who?
There will be some frantic bidding and buying/rebuying but it is a few people racing to get burned as they aren't getting returns in property/bonds/gold at the moment. Zuck is clearly hoping to cash out and if he is smart he will run - why be the one holding the rudder when the iceberg hits?0 -
Looks like the NASDAQ can't handle the amount of orders they're getting and can't settle on a price. Shares still haven't started trading yet...Faith, hope, charity, these three; but the greatest of these is charity.0
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I've heard it could close at $62 :eek:
There are a lot of crazy people out there...The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0 -
Finally opened at $42 so already up 10%Faith, hope, charity, these three; but the greatest of these is charity.0
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No and it doesn't deserve to be."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Finally opened at $42 so already up 10%
Back to $38, would be hilarious if it closed lower.The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0
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