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Facebook worth $104BN?
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It's struggling already, fallen back to its IPO price of $38, now the underwriting banks are stepping in to support the price but they dont have a lot of shares given the volume.
And you can't even short sell these shares yet so it aint the hedge fund managers, not looking great...Faith, hope, charity, these three; but the greatest of these is charity.0 -
the forcasts last night were 60 dollars at close---the presenter was asked if this was a bubble and said it was 'froth'---i am talking about American bloomberg----the dat that counts on these shares is the 29th May when the real trading starts!mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.0
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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.
That, plus the fact that there revenue model is, well, somewhat airy fairy. Monetising mobile advertising & CPA advertising is much harder than it looks. Traffic does not equal revenue and many tech businesses simply forget this.
Paying $1BN for Instagram must surely go down as one of the most overpriced acquisitions & destruction of shareholder value ever.0 -
Paying $1BN for Instagram must surely go down as one of the most overpriced acquisitions & destruction of shareholder value ever.
I did wonder if all this A and B share stuff was so that shareholders couldn't get rid of Zuckerberg. He had the idea and it was a good one, but so far so disastrous in terms of his running of the company, surely he knows he'd be ousted?“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0 -
I did wonder if all this A and B share stuff was so that shareholders couldn't get rid of Zuckerberg. He had the idea and it was a good one, but so far so disastrous in terms of his running of the company, surely he knows he'd be ousted?
That's the same structure as NewsCorp.
Subscribers are good enough to give him money, but not good enough to vote.
Seems pretty stinky to me.
**Corporate governance alert**0 -
That's the same structure as NewsCorp.
Subscribers are good enough to give him money, but not good enough to vote.
Seems pretty stinky to me.
**Corporate governance alert**
Sounds stinky to me too. I think not trusting the board is as good a reason as any not to invest in something.“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0 -
Well, today, if the underwriters hadn't stepped in, it would have dropped like a stone. Launch valuation $38, closing value $38.23, with huge amounts held/witheld by underwriters to avoid hysterical panic and confidence-shattering run on IPO day.
$115 per user in ad revenue, eh? It is a made up number, this is a total replay of the first dotcom boom and bust that killed Marconi and nearly BT as well (remember at one point they made £100/sec profit? Some bad dotcom speculation helped wipe that out!). And GM withdrawing $10M of advertising on the grounds that it was proving worse value than pretty much any other platform...including traditional dead-tree advertising.
Once the market is free, I cannot see these being anything like $38, maybe dramatically less once adjusted. Then if the kids flit away as they will (MySpace, Bebo, etc) it'll become a penny stock or bought up just for the (borderline illegal) tracking data they compiled and all the photos they now own as muppets give away their IP.0 -
A Bloomberg comentator was saying to day
"Facebook is 17% of internet traffic. So how much is 'the internet' worth, and then take 17% of that. Suddenly $100bn doesnt sound too crazy"
LOLFaith, hope, charity, these three; but the greatest of these is charity.0 -
I must confess, I don't really get facebook.
I can see the use of it, especially from a business sense and interaction with a group of people.
But people totally engrossed on their phones, getting the latest update on someone's kid who they have never even met has taken a dump in the last 2 hours, and then commenting on it with LOL LOL LOL? Waste of life if you ask me.
...says he sat on here
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A Bloomberg comentator was saying to day
"Facebook is 17% of internet traffic. So how much is 'the internet' worth, and then take 17% of that. Suddenly $100bn doesnt sound too crazy"
LOL
It is a reasonable point... if Facebook can monetise this position then $100bn is cheap.
I just don't know if they can with Zuckerburg at the helm.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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