Facebook IPO

[Broncojohnny]

Like Leeds said, it was an opportunity to cash out by the private investors. Now the retail investors are getting hammered.

This is why most IPOs are shit. If the come out price is at a great value, you as a retail investor will never see a share. If the price they are coming out at sucks ass then you'll be able to buy quite a few shares.

This was just the sheep getting sheered, nothing more. Even if the stock was up 20% the first day, the value isn't there in facebook. You can do a simple analysis on a piece of paper or in your head. The company was valued at over $100 billion according to some people. Let's say it is worth $90 billion for the sake of easy math. It has 900 million users. So that value is telling us that each user is bringing $100 in value to the company. I don't know what you have to be smoking to believe that a user brings $100 to facebook but some people believe it.

[Sean88gt]

This is why most IPOs are shit. If the come out price is at a great value, you as a retail investor will never see a share. If the price they are coming out at sucks ass then you'll be able to buy quite a few shares.

This was just the sheep getting sheered, nothing more. Even if the stock was up 20% the first day, the value isn't there in facebook. You can do a simple analysis on a piece of paper or in your head. The company was valued at over $100 billion according to some people. Let's say it is worth $90 billion for the sake of easy math. It has 900 million users. So that value is telling us that each user is bringing $100 in value to the company. I don't know what you have to be smoking to believe that a user brings $100 to facebook but some people believe it.

Which has always been my point, I don't see the worth in it. If they do the projected $6.1 Billion in revenue for 2012 they should be worth $18-24B max. And even that is based on a group of people that will jump ship for the latest and greatest thing. Zuckerberg was smart to sell 30 million of his shares, hopefully he'll invest in something worthy.

[Steve]

$38 to $4 bucks. That can't be good. lol

[mikec]

$38 to $4 bucks. That can't be good. lol

You mean $34? Unless the feed on drudge is way behind...

[Steve]

You mean $34? Unless the feed on drudge is way behind...

That's what I get for watching Fox News again. lol.

[Sean88gt]

That's what I get for watching Fox News again. lol.

Or not paying attention.

[Steve]

So why the sudden drop in value?

[347Mike]

Did not buy.

[Broncojohnny]

So why the sudden drop in value?

There is no drop in value, just a drop in what people will pay for the shares. There is a big difference.

[exlude]

So why the sudden drop in value?

It was overvalued to begin with. Propped up by a ton of media hype. Once major investors got out, people are going to start questioning the valuation a little more.

[Steve]

There is no drop in value, just a drop in what people will pay for the shares. There is a big difference.

Interesting.

It was overvalued to begin with. Propped up by a ton of media hype. Once major investors got out, people are going to start questioning the valuation a little more.

I realized where I got the $38 figure from, it was the opening share. I guess they were expecting some high opening cost and didn't get it only to drop from there.

So what does this mean for the company at $4 a share?

[Sean88gt]

Interesting.



I realized where I got the $38 figure from, it was the opening share. I guess they were expecting some high opening cost and didn't get it only to drop from there.

So what does this mean for the company at $4 a share?

At day 2, not a damn thing.

[YALE]

Interesting.



I realized where I got the $38 figure from, it was the opening share. I guess they were expecting some high opening cost and didn't get it only to drop from there.

So what does this mean for the company at $4 a share?

It's not at $4 dollars a share. It's at $34.71 right now.

[Zfan]

Low to mid teens is a fair value

[Lason]

Interesting.



I realized where I got the $38 figure from, it was the opening share. I guess they were expecting some high opening cost and didn't get it only to drop from there.

So what does this mean for the company at $4 a share?

It dropped $4/share (more specifically $4.20), its not valued at $4.