Facebook IPO

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Facebook IPO

Post by Henrik on Tue May 22 2012, 16:11

The Facebook IPO has been in the making for some time, and it has generated a huge interest from around the world. The financial world needs a bit of a success story right now to boost confidence, and to help it move upwards, and many have thought that the Facebook IPO would be it. Considering the hype Facebook in general has been able to create, it was only a normal expectation.

However things have not really gone the way many expected and I can’t say that I am unhappy about that. I have never been a fan of meaningless companies making huge amounts of money (and don’t tell me that I work in an industry that does just that…I know!), and back in the tech bubble of the late 90’s blowing up in 2000, I made many comments about people basically making money with air. At that time people would buy pretty much anything techy, and if it had dot com in the name it was even better. The expectation was to make one or two hundred percent returns in a matter of weeks at most, and for a while many did. Many just didn’t realize that there was no real substance there, and to a certain extent I feel the same about Facebook right now.

Yes, they have huge advertisement deals, and with their millions and millions of users there is an audience for these ads. Yet many people are quite upset with how Facebook works, and I would not put it past anyone to actually come up with an alternative within a couple of years that will make Facebook look like old BBS from the 80’s.

It seems they were finally too greedy with the IPO, setting the price too high at $38 and issuing too many shares. The initial research indicated a price between $28 and $35, and also a lower number of shares to be issued. Sure, Morgan Stanley wanted to avoid the share price to pop on the first day, and was hoping to see something like a 10 to 20% hike, but it seems to me they were a little bit too successful there. With the price now trading below the issuing price I bet a lot of people are slightly upset (including Morgan Stanley who according to my calculations must be losing some $160 million at this point on their positions in Facebook).

I really wish markets would go back to actually being based on real economic situations, and that one could make an educated investment that would lead to a real profit rather than the current dumb luck emotional roller coaster the stock markets have become. Gambling in a casino seems to me a better investment these days than the stock market…

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Re: Facebook IPO

Post by Gelert on Tue May 22 2012, 21:15

Good piece Henrik - I was actually quite surprised at by how much, and how quickly the value dropped.

But it certainly reeked of "profiteering" from the get-go.

I use Facebook.
I have a fake birthday and fake other credentials attached to my "profile".
I do NOT click through to allow "apps" any links to my credentials, fake or otherwise (er, I hope...!).

In other words, I'm exactly the kind of person that Facebook isn't making money from.

And I wonder how many other "financially-solvent but tech-savvy" FB-users there are out there, using the site but not generating "hits" for wassisname or his "relevant / targeted ads" cronies....?

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Re: Facebook IPO

Post by Henrik on Wed May 23 2012, 08:24

Seems the drop continued yesterday to $31. I suppose now it is just a question of a couple of days until it starts picking up again as speculators hopes for a chance to be buying the share at a discount. It will more than likely then quickly jump up, for no real economic reason (Facebook has revised lower their expectations for the year), until investors decides to take their profits.


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Re: Facebook IPO

Post by Danny Boy on Wed May 23 2012, 14:45

A company owned by a Jew, who stole the idea from someone else (not Jewish), working in the IT industry, again dominated by Jews, and a much hyped flotation in the media, again, dominated by Jews, and backed/promoted by the financial industry, again, dominated by Jews.

And people are amazed that they have been ripped off.

I don't feel sorry for the idiots hat have lost money, the lure of an easy buck is a curse of the last 30 years, I hope they lose billions more and another person invents a similar web site for free, and facebook goes tits up.
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Re: Facebook IPO

Post by H8R on Wed May 23 2012, 23:59

I went fishing last weekend with people who were some of the first hires at Facebook.

Some really smart fuckers work/worked there.

Facebook sucks. I hate timeline. I won't click on links that makes me give them access.

But I will go deep sea fishing with them.
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Re: Facebook IPO

Post by TopContender on Thu May 24 2012, 01:55

I read that the we are seeing some lawsuits over the IPO. I guess Morgan Stanley advised their customers to some insider knowledge that was not good for the stock just a few days before the debut.
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Re: Facebook IPO

Post by gueuzeman on Thu May 24 2012, 04:23

Why would I buy anything with a price to earnings ratio that high (about 100/1)?

No apps for me, fake name, fake birthday, no credentials, well, because I have none.

I remember speaking to a young person a few months ago and saying that in a few years it's very possible that FB will be another has been like myspace. The look of disbwelief on her face was priceless.

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