Facebook IPO - Friday, 18.05.2011

momchil9

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Jan 22, 2012
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biggest tech IPO since google...

Are they gonna break the $100B in the first 2 hours, or is it gonna be in the first 24h?

Disqus!!!

Nah, it will be definitely ovehyped, but where will the dust settle? Is it gonna settle the first few days(like a normal company) or is it gonna settle(and plummet) after few months(a-la zynga, groupon).

Time will tell I guess, but speculations are the Internet's favourite thing. After cats, of course.
 


I'm personally having a hard time deciding whether to drop money on it or to stay away. People seem to think its going to be way overvalued, but if they start the whole serving ads outside of Facebook thing that could definitely help their revenue figures and fuk with Google.

I don't know anything about investing though, so in all likelihood I'll stay away until I see it drop enough. Isn't the world due for an economic collapse or some shit soon?
 
I'm personally having a hard time deciding whether to drop money on it or to stay away. People seem to think its going to be way overvalued, but if they start the whole serving ads outside of Facebook thing that could definitely help their revenue figures and fuk with Google.

I don't know anything about investing though, so in all likelihood I'll stay away until I see it drop enough. Isn't the world due for an economic collapse or some shit soon?

If you want to buy Facebook for it's value, you should wait a few months after the IPO imo.
 
It could be like the Linked In IPO, starts off at a nominal price, goes up like $40 bucks per share in the first half hour, then drops below the start price before it settles down.

Basically if you can buy a shit ton of stock the absolute second its available and quickly sell it during the first initial peak period you could score some quick cash, but its a gamble cause you don't know when it'll initially peak.

Other than that wait a few months to see how it'll settle down.
 
You can't buy it at IPO price, that's either already sold or pre-sold to big investors.

I, personally, think I'm long on it, for the long term.
 
I'm in at ipo...wasn't that hard. Fill out cust profile at your broker and promise to buy a big enough block.
 
I think this will be bigger than planned. Didn't the same thing happen with LinkedIn? Why do I feel like this is Y2K all over again, lol?
 
This. E*Trade has it on their homepage.

Etrade and Fidelity are the probably the best ways for retail investors to get into the IPO.

With Fidelity you just need an account with $500,000 worth of assets to qualify, much lower then the $5 million plus or so of the major investment banks.

There's no listed requirements for ETrade but they'll obviously be giving it to customers with the most assets and the frequent traders they make the most money from first. The age of your account probably also matters.

But since ETrade is an underwriter directly they may have more shares available then Fidelity and it's possible even people with a $100,000 or $250,000 account can get a little piece of the pie.

Apparently Charles Schwab also has a few shares available for the IPO too so its worth a look with you have an account there.

But just because you qualify and can place a conditional offer, it doesn't mean your are guaranteed to recieve any shares. Since Facebook just raised the price from the $28 to $34 range to the $34 to $38 range, it means there's a lot of demand for it and it's way over subscribed.
 
If you are in it for quick cash, get in quickly, ride it to the top, and put a stop loss at below 20% (after you ride that bitch above 20%, obviously).

If you are in it for long term, you're an idiot, cause you don't know the basics of business. What company in the world do you know can seriously sustain 100 times P/E over 1 or 2 years? In fact, there has been only 21 stocks in history to do this, but they were in the single digit ranges when they began, and then eventually increased to catch up and got to 20% profitability... Fuck, anyone which half a brain can see the problem.

Think about it from your own facebook experience... What would happen if they start raping the mobile and increasing Ads like investors seem to be hounding them to do? Have you noticed that people have have upgraded to the facebook timeline, post alot less???? Shit is stagnate.... It's all down here from now boys... Get in quick, and get out while the shit is hot... shit you might even make more money that Zuckerberg takes... LOL.... no serious... let's get serious... long term IPO... lol.
 

You've got no idea what their future monetization plans are. I'm pretty sure their undewriters will know a lot more than you and wouldn't valuate them at this P/E if they didn't know something.

It could be that, or 2 more things:

1) FB accounting and planning largely overestimated their future monetization and the underwriters fell for it.

2) The underwriters want to make a quick buck at FB's expense.
 
LOL, fail date in the OP

EDIT: they just filed new s-1 $34-38/share, valuating @ $103B., raising a little shy of $15B.

ticker: "FB", ldo

LoL people thought they would drop the price to 75-90B.
 
You've got no idea what their future monetization plans are. I'm pretty sure their undewriters will know a lot more than you and wouldn't valuate them at this P/E if they didn't know something.

It could be that, or 2 more things:

1) FB accounting and planning largely overestimated their future monetization and the underwriters fell for it.

2) The underwriters want to make a quick buck at FB's expense.

I am not thinking about the future monetization plan, whatever it is, it is going it is going to involve more personal user information and more advertisement. Then they have to figure out how to make their audience traffic get a better ROI for advertisers... That's their problem.

Underwriters and EVERYONE on wall street is in it for money. They underwrite these big IPOs so they can sell the sht out of it, and make boat loads of money.

Look abd think about the big picture, facebook is walking into the wolves den talking some crap about better user experience first and revenue 2nd, and is currently at 100 times P/E. how long do you think they will last if they dont either increase revenue quickly?

Trust me, EVERYONE is in it for the money, especially the underwriters. Its a bank heist, in and out.
 
Of course they are in for the money. That doesn't necessarily mean that they employed sneaky tactics to ruin FB.

My point is that they might have a few tricks to pull lower the P/E. I agree that it is waaay overpriced now. My point is they overpriced it for a reason(they have exact plans and numbers).

gtg, diablo3 awaits.