<20 Minutes before FB goes live on Stock Market

[Rexxr]

Nope, Facebook is at the height of it's popularity. Buying shares now would be very risky.

Yep it is going drop a lot. Come back in 6 months and see how it is.

[Eorayn]

Too risky, because I feel like Facebook is peaking right now.

[Deleted]

Of course, for every idiot like that, there's another person who doesn't see why facebook's worth anything because they don't understand the value of a massive captive audience.

Sure, but out of the clueless people, those who don't participate are going to be better off than those who do.

I'd rather risk losing an opportunity in a field I don't understand, and use my limited capital where I am knowledgeable.

[Isuckatpvp]

Worst decision in FB's history.

They didn't have a choice. SEC rules required them to go public. It's not as if they sat around at lunch and thought they should. The law told them they must.

[Deleted]

They didn't have a choice. SEC rules required them to go public. It's not as if they sat around at lunch and thought they should. The law told them they must.

Their decision to list on the stock market was purely voluntary.

[ptwonline]

Facebook is a company that could either continue to grow, or it could drop like a stone. There is nothing inherent to it's industry or business model that could not allow a competitor to come in and steal their market. See: MySpace, RIM Corporation (Blackberry)

Google was the same way. However, their aggressiveness and willingness to branch out has kept them successful even when all their competitors got driven into the ground. There is still room for a competitor to overthrow them but it will be very, very tough now.

I suspect that holding Facebook medium term (a few years) will be very profitable. Will it be wildly profitable longterm? Who knows.

[Jackmoves]

Yep it is going drop a lot. Come back in 6 months and see how it is.

Idd, I mean it's valued higher then Boeing and Ford together, just to take an example. Or about as much as 5 H&M, H&M had a profit of 15 billion Swedish kronors last year, FB had a profit of 4,5 billion.

Anyone who bought is kind of a


I might buy when it's actually properly valued, at around 10-15$ ; )

[reohh]

I'm not gonna buy, the company value is what... 100 times more then the actual profit they make.

FB is currently trading at 26-29 times their profit.

[Maharishi]

Sure, but out of the clueless people, those who don't participate are going to be better off than those who do.

I'd rather risk losing an opportunity in a field I don't understand, and use my limited capital where I am knowledgeable.

That could be applied to pretty much every stock though. There are very few types companies who I feel like I could have a legitimate opinion of their valuation from personal knowledge.

[Jackmoves]

FB is currently trading at 26-29 times their profit.

I exagerate man

[reohh]

I exagerate man

Well you weren't wrong in your thought. Most companies trade at 4-5 times their profit at their IPO and only a select few go up from there. Why FB is valued at $114 billion is beyond me.

[Millennía]

I would never invest in Facebook because it is wayyy too risky because there isn't really anything to invest in as they have no real assets. Not to mention the fact that they are really over valued. $104 billion dollars for a company that makes $3-4 billion a year is just ridiculous.

[Lazy Gecko]

It's all downhill from here.

[Tuqui-tuqui]

Disclaimer: I'm not an economist nor am I a trader.

You guys keep comparing FB to Boeing, Ford, McDs, etc., but these companies have a specific product and a specific market to tend to. Facebook's product (the user) is as varied as they come. Investors are buying into it because they see the potential of corporations reaching consumers at a global scale with such diversity that they can be targeted specifically by FB's recognition tools. You're a white male, age 25-25, who likes sports? Here is a targeted ad. It's not about what the company is worth. It is about what it will be worth in the long run when consumers accept those little annoying blurbs on their daily feed.

If you have $5k put away to buy stock? Good luck. It will be difficult to get access to this stock. Banks are getting first picks, along with their best and loyal customers, because they understand that this is a long-term return. And these people will only release their shares when it either 1) blows up ridiculously high or 2) it tanks so badly it will be worthless. Either way, us, the peons, will lose.

Disclaimer: The above was mostly opinion based on reading a few articles on FB's true value. Accept it or destroy it. Up to you.

[Jackmoves]

Disclaimer: I'm not an economist nor am I a trader.

You guys keep comparing FB to Boeing, Ford, McDs, etc., but these companies have a specific product and a specific market to tend to. Facebook's product (the user) is as varied as they come. Investors are buying into it because they see the potential of corporations reaching consumers at a global scale with such diversity that they can be targeted specifically by FB's recognition tools. You're a white male, age 25-25, who likes sports? Here is a targeted ad. It's not about what the company is worth. It is about what it will be worth in the long run when consumers accept those little annoying blurbs on their daily feed.

Of course there is a great value in FB, but it sure as hell isn't 38$ per share. Not today, not tomorrow and maybe not in the next few years. So people who buy at this price...

[Maharishi]

Of course there is a great value in FB, but it sure as hell isn't 38$ per share. Not today, not tomorrow and maybe not in the next few years. So people who buy at this price...

I feel like direct access to 1/7 of the world population on a monthly basis is reason for a pretty high valuation. Apple could still buy all the company's stock with their cash on hand.

Any reason for your declaration of what it's worth, or just because?

[Jackmoves]

I feel like direct access to 1/7 of the world population on a monthly basis is reason for a pretty high valuation. Apple could still buy all the company's stock with their cash on hand.

Any reason for your declaration of what it's worth, or just because?

I base my oppinion on actual profit gains, which is pretty damn important, unless they pull some seriously magic miracle out of their sleeves there just isn't a chance in hell that they can pull out profits that makes 38$ per share a reasonable price.

I could accept a share price that was x10 the profit of last year, that would be an ok price because there is a lot of potenial in FB and I expect their profits to grow, but not this price, there is just no way.

[Deleted]

The thing is, Facebook may very well turn out to be a fad. People may very well get bored of it, just like they did with other social networking sites in the past. As with other things, it will need to continue to evolve and I doubt there is really much it can do at this point to be considered ground-breaking.

[Maharishi]

I base my oppinion on actual profit gains, which is pretty damn important, unless they pull some seriously magic miracle out of their sleeves there just isn't a chance in hell that they can pull out profits that makes 38$ per share a reasonable price.

I could accept a share price that was x10 the profit of last year, that would be an ok price because there is a lot of potenial in FB and I expect their profits to grow, but not this price, there is just no way.

Sure, but the normal rules for profit and valuation don't really apply to companies like Facebook. It's not so much an investment in the company as it is, as it is an investment what it can and will become. Facebook's done with it's growth phase, it can now move on to it's monetization phase, becoming the backbone for other services.

[Deleted]

anyone remember myspace? or bebo? - facebook has a shelf life, and its coming to its end,