Facebook Shares Taking Dive in Early Morning Trading

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nurgletheunclean

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This was way overpriced from the get go. To bring them in line with google, price should be around 1/5 so look for a target price around $7.60.

But realistically they should be selling at a discount to google since when google IPOd they sold at a p/e of 10. If FB was held to the same standard they should have IPOd at $3.80. only 1/10 as many shares.

This turd has just begun to circle it's way down the toilet.
 

jacobdrj

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Did Zuckerberg do something to tick off GM, that they made that ever-so-ill-timed bailout from Facebook?

Honestly, I don't understand the revenue model for Facebook either. The advertising doesn't work so well, and without dealing with questionably ethical, (and potentially illegal) practices in their data-mining, I don't know how they can bring in money. If that is the case, I think investors have woken up to the fact that Facebook looks like a bubble waiting to burst...

Facebook waited WAY too long to go public.They could have gotten MUCH more money had they done this a year or two ago...
 

aracheb

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[citation][nom]jacobdrj[/nom]Did Zuckerberg do something to tick off GM, that they made that ever-so-ill-timed bailout from Facebook?Honestly, I don't understand the revenue model for Facebook either. The advertising doesn't work so well, and without dealing with questionably ethical, (and potentially illegal) practices in their data-mining, I don't know how they can bring in money. If that is the case, I think investors have woken up to the fact that Facebook looks like a bubble waiting to burst...Facebook waited WAY too long to go public.They could have gotten MUCH more money had they done this a year or two ago...[/citation]
92% or more of facebook money come from illegally sold information. just what you stated in your post. They advertisement system only work partially when you are logged in facebook and using a browser and even there does not work properly or doesn't work at all, so they cant claim that half of their income come from there. 92% of their revenue come from market researched or 3rd, 4rd, 5th party company buying their demographics and statistic data, while other just buying the contact info to spam you as a potentially new customer.
 

molo9000

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100 Billion Dollar market cap was completely absurd for a company with about 4 billion revenue per year and an uncertain future.

Nobody can tell me Facebook is going to keep it's monopoly status forever. In 5-10years it might be just as worthless as MySpace.
 

dark_lord69

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$16 billion?
Heh... I don't know how much they have in assets but I know they make a lot of income on advertising. But I think $16 billion is a streach. I would NOT buy that stock.
 

dalethepcman

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[citation][nom]jacobdrj[/nom]Did Zuckerberg do something to tick off GM, .... I don't understand the revenue model for Facebook either. ....[/citation]

I understand their revenue model perfectly. It goes something like this.

Make next big internet sensation. Sell out to big investors ($16B IPO), burn company to the ground, laugh at wall street.
 

southernshark

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People are really negative on this company. And to an extent I understand. But realistically it gets more people involved than CBS or NBC.

CNBC sold for almost 3 billion dollars............ talk about overpriced.

Its just a matter of figuring out how to make money off those people in a reliable manner. If they can do that, its well worth the asking price.

I think the price is being driven down but will be ran back up.

Anyway, I've got to go check FB just like all of you.
 

Stanks

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The Facebook IPO launched at $104 billion. The article incorrectly states $16 billion. Facebook launched with a profit to earnings ratio of more than 100 to 1 based on 2011 data. Most companies launch with a P/E of 10/1, or if they're lucky, 15/1.

My biggest concern is a publicly traded company yields profits for its investors. Facebook's commodity is personal information. How do they plan to give investors a possitve return?
 

okibrian

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[citation][nom]southernshark[/nom]People are really negative on this company. And to an extent I understand. But realistically it gets more people involved than CBS or NBC. CNBC sold for almost 3 billion dollars............ talk about overpriced.Its just a matter of figuring out how to make money off those people in a reliable manner. If they can do that, its well worth the asking price. I think the price is being driven down but will be ran back up. Anyway, I've got to go check FB just like all of you.[/citation]
Well I'm very happy to say I do NOT and never will have a Facebook account. Some of us knew better from the get go and were just waiting for others to understand how they are giving up way to much info.
 

Northwestern

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Quoted from Jim Clark's "NetScape Time" autobiography;

"When setting an IPO, you want to put the price just right. Not too high, which will deter investors, and not too low, which will spur an unwanted rush".
 

aevm

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[citation][nom]Stanks[/nom]The Facebook IPO launched at $104 billion. The article incorrectly states $16 billion. Facebook launched with a profit to earnings ratio of more than 100 to 1 based on 2011 data. Most companies launch with a P/E of 10/1, or if they're lucky, 15/1.My biggest concern is a publicly traded company yields profits for its investors. Facebook's commodity is personal information. How do they plan to give investors a possitve return?[/citation]

The article states "$16 billion IPO". That's correct. They claimed the company was worth $104 billion, then offered about 16% of it for $16 billion.

Personally, I don't think Facebook is the center of the Internet. I've been happily using the Internet since 1994 and never visited a Facebook page. Why would I want to become a product they can sell?
 
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