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Facebook sinks


CHiLL

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Some of Facebook's investors found themselves down nearly 25% from the close of Friday to the reopening on Monday. Why? Because Facebook entered the stock market on it's own for the first time, without the support of it's underwriters. Facebook's debut has been less than smooth, so bad infact, that NASDAQ has been forced to change it's regulations to prevent such a failing happening again.

 

When Facebook debut onto the stock market has been mired by problems and massive drops in stock value. From the Friday before the debut to the following Monday morning, some investors were down 25%.

 

Source: http://www.reuters.com/article/2012/05/21/us-facebook-struggle-idUSBRE84J0D620120521

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Buy, buy, buy. Then sell as soon as it hits 35 usd again. That's assuming you didnt't buy it above 35 usd. If that's the case, you are sunk. Now I wonder how much hard cash Mark got out of that IPO?

 

Apparently a lot ... I doubt the shares are gonna drop below 34$/share ever again.

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say what? The shares are at 31.94... that's what they closed at on Friday. Now sure where you're getting your numbers at.

 

I've been watching the stock since its release. It has been nothing but rocky. They have had maybe 2 days that it didn't drop in price. It's grossly overpriced. The price point was right, but then CFO bumped up the released shares by 25% and keeping the same price point. The value of the company is no where near it's current valuation.

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From what I have read, the real price should have been nearer to 20usd than 30usd. The guy who gave that figure based his calculation on how other companies are actually evaluated. I think his comparison included Google and Microsoft.

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It's worth that much based on the price of the shares. When the share price drops, it won't be worth that much anymore. What we need now is another company to steal the limelight from Facebook. Then the Facebook share price will drop like an over-weight vulture with big rocks tied to its featherless wings.

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Facebook's stock problems are mainly due to the fact that they have no main source of revenue to call their own. Facebook doesn't sell anything nor does it create anything outside of its own social structure. All they have going in the way of revenue is advertising. It's that uncertainty that's going to keep Facebook's stock prices iffy and fluctuating.

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Facebook is something I would never invest in now even if I had the money. You dont invest in companies at their peak, you invest in them when they are up and coming. Facebook is definatly at its peak IMO and sooner of later it will be overtaken by another site.

 

Sound far fetched? Ask myspace.

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Actually I think if one wants to invest in the stock market (which I'm not sure is such a good idea right now or in the near future), I would suggest reading some books about the great investors like Warren Buffet or George Soros. Personally, I am more the Warren Buffet style, which in a nutshell, is to buy great stocks when they are on sale. There is SO much more to the whole process than that, so I would encourage anyone to become more knowledgeable about investment. From the little I've read recently, I've decided to hold off for a bit. Really the whole process sounds about as reliable as going to a casino and betting your money. You REALLY need to know what you're doing and I'm smart enough to know that I don't know what I'm doing when it comes to buying stock! I need to do a lot more research.

 

I've actually thought that I should probably just become a Warren Buffet 'groupie' and just do what he does. Feeding off of his decades of expertise might be the route I'll eventually take. :twitch:

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Facebook is something I would never invest in now even if I had the money. You dont invest in companies at their peak, you invest in them when they are up and coming. Facebook is definatly at its peak IMO and sooner of later it will be overtaken by another site.

 

Sound far fetched? Ask myspace.

 

 

Yeah, that's not the only problem, Facebook has NO business model outside of "we have advertising" as their revenue source. Zuckerburg was smart to get out when he did. Facebook is turning out exactly like Myspace did. As in it was highly popular, and then it fizzled into being almost non existent.

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Google MIGHT be in a different situation since they aren't like Facebook where Facebook ONLY has advertising as their main source.

 

But even with Google +, at some point if they'll get overtaken too if they become the top spot. But atleast they have other avenues to fall back on. Facebook doesn't.

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Google MIGHT be in a different situation since they aren't like Facebook where Facebook ONLY has advertising as their main source.

 

But even with Google +, at some point if they'll get overtaken too if they become the top spot. But atleast they have other avenues to fall back on. Facebook doesn't.

 

This is very true. To be honest I actually like google+ layout better than facebooks. Thought it may have done better than it has by now, however there are still people joining it daily, and gmail started like that when based against hotmail.

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This is very true. To be honest I actually like google+ layout better than facebooks. Thought it may have done better than it has by now, however there are still people joining it daily, and gmail started like that when based against hotmail.

 

That's usually how Google does things. Start small and slowly build up. That's how they eventually became the best search engine and email provider. And it's how they're giving Firefox such a fight right now. Their fight with Facebook is no different. Baby steps.

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