That sort of extroadinary price for a company that doesn't produce that much seems like the sort of irrational exuberence that preceeds another stock market crash. At the same time many europeans are queueing at the ATM trying to withdraw what they can before the weasel goes pop...
Sssssssssssssssssssshhhhhhhh. Put your fingers in your ears, bury you're head in the sand, and don't mention the words dot com bubble. It really is worth that. Honest! Thats why we're putting your pension fund on it. Don't worry. It'll all be fine
if you've got a spare grand lying around, buy them today, sell them tomorrow, you'll make some money.
It's only one company this time though.
[img] 
[/img]
Pssst !.
Wanna buy some shares ?.
Promise the dealers won't take a profit next week....
😉
I wonder when Facebook becomes plagued with adverts like Friends Reunited did will it die the same death. They are already talking about pay per post promotions to make your post stand out more than anyone else's in your friends news.
Yeah seems a bit overvalued. They haven't figured out how to make an real money from smartphone users yet. The smartphone FB apps don't have any ads which is their main revenue stream.
That would concern me if I was looking to invest as everyone I know uses Facebook on a smartphone.
Incidentally, "pop goes the weasel" is about pawning your fur coat to get some money. I think most of Europe did that a while ago. 🙂
does zuckerberg care?? By tonight he'll have so much money he could write 'bye bye MySpace' on the moon if he wanted. If FB went bust tomorrow he'd still be a wealthy 28 year old.
They are already talking about pay per post promotions to make your post stand out more than anyone else's in your friends news.
Don't twitter do this already? Doubt anyone is really going to care!
I wonder when Facebook becomes plagued with adverts like Friends Reunited did will it die the same death.
Friends reunited died because everyone put in their schools, OMGed at the names, maybe picked out a few and then that was that. Once it was done, it was done.
Facebook is ongoing.
This is great blog well worth reading on this subject
http://adcontrarian.blogspot.co.uk/
[i]does zuckerberg care??[/i]
I suspect he cares a lot. Otherwise he would've sold out to Microsoft for $23Billion. Hard to comprehend caring that much for something!
Placed at $38 for a 108bln market Cap
Already $45 bid pre market ... no offer
Hearing opening will be $60 ... so mkt cap will be acutally be about $172bln
Crazy times
Around $200 million for the graffiti artist who painted a wall in Facebooks first office. Turned down cash and accepted shares instead.
Good work!
The (high) valuation is easy, 'cos everyone who's involved in the valuation process is an FB user.
Whereas I, a non-FB user, struggles with the business model finances 🙂
Does anyone know what the forward multiple on earnings is based on the issue price?
$100bn is meaningless as a valuation without some sort of reference point. If their earnings are $15bn a year you'll only have to wait just over six years before you've covered your original investment.
That said, I really can't believe that their earnings are $15bn a year!
This is a good read and will ring true for anyone who has tried FB advertising!
http://www.forbes.com/sites/ryanholiday/2012/05/17/why-i-lost-my-faith-in-facebook-advertising/
Does anyone know what the forward multiple on earnings is based on the issue price?
Not looked at forecast earning but rough P/E of 100:1 at likely val give an idea!
Facebook is ongoing.
Nope. They make their money from hosting advertising.
Without the flotation even completing, General Motors pulled out. Reason? Facebook advertising has no impact on sales...
It's already on the way down.
Surely there really is no money in it and with the scale of it, it'll just cost a fortune to run in years to come. Seems like an odd thing to invest in, but what the hell do I know about investments. I'm the one who will be sat here coding all weekend 🙁