Facebook IPO a scam?

LIB3RTY

Looks like insiders pumped it to dump their shares on average joes and rookie investors.

Morgan Stanley Made Money on Facebook Share Drop

Investors Sue Facebook, Advisers As Scrutiny of IPO Hype Intensifies

I knew this would be a bad investment, hope anyone here that bought any didn't lose too much dosh.

le_loup

Have you only just come to that conclusion?

LIB3RTY

No, like I said, I had a bad feeling about it. Facebook are already at/near their peak growth IMO. What more can they do to bring in more revenue? Charge people to use it? They cant stick anymore ads on there that is for sure, it's overcrowded as it is.

atush

I had a bad feeling it was overvalued which has proved true.

But it wasn't a scam.

jimjames

LIB3RTY wrote: »

They cant stick anymore ads on there that is for sure, it's overcrowded as it is.

Their main problem is that with mobile they have no ads on it at all.

I went to a presentation by Facebook the week before the IPO. The numbers presented were that 500 million out of the 1 billion members access the site daily and 350 million do so on mobile.

So 70% of your most active users access the site using a method that generates no revenue.

sabretoothtigger

Might the stock pop if they can change that. Is this because flash doesnt work with Apple

Surely mobiles advance in technology quite regularly. If the scenario is very likely to change in FB favour, its a reason to buy.

Tell me when its 12, it'll only be twice the valuation of Apple then

IronWolf

jimjames wrote: »

Their main problem is that with mobile they have no ads on it at all.

I went to a presentation by Facebook the week before the IPO. The numbers presented were that 500 million out of the 1 billion members access the site daily and 350 million do so on mobile.

So 70% of your most active users access the site using a method that generates no revenue.

Surely if they can crack mobile though, it could lead to huge growth then?

I don't think facebook is worth its SP atm, but some tech companies have shown you can rapidly grow by branching out into other areas, like Apple and Google.

raider

sabretoothtigger wrote: »

Tell me when its 12, it'll only be twice the valuation of Apple then

Am I reading your post wrong somehow, or do you have your figures mixed up?

Current Market Caps
Apple: $535B
Facebook: $62B

Edit: I guess you are talking about P/E

ColinMikeMe

I bought some at about $35, and sold the next day, glad I did now it dropped under $30

sabretoothtigger

raider wrote: »

Am I reading your post wrong somehow, or do you have your figures mixed up?

Current Market Caps
Apple: $535B
Facebook: $62B

Edit: I guess you are talking about P/E

Yea, total worth of a company that actually has made stuff for decades is thankfully still worth more

The PE of Apple is real but some think its impossible they can sustain the growth.
The difference would seem to be they are very much involved in selling to Asia where as FB is not as successful probably due to language and culture differences
Apple has been cheap for years and still is presuming they can keep growing, FB could only be cheap if they signed up most of the planet

Apple relys on cheap mass labour, this is a factor subject to great change

LIB3RTY

Apple have disgusting work standards in the far east. Remember when they had that suicide protest going on (I think it was last year) where workers were throwing themselves off the roof of a factory. Appalling, and precisely why I won't give them a damn penny. They treat their factory staff like crap, slaves practically, get their stuff made for next to nothing and then bump up the price ten-fold to sell to people here in the west.