For Q2, the average revenue per user was $1.28 ... a whopping 2% increase from last year... buy when there's blood in the streets! good luck bros.
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the stock dropping doesn't mean facebook is worthless. it means wall street analysts are a bunch of greedy scumbags who tried to milk people out of their hard earned money and failed.
-forbesMorgan Stanley and the other big investment banks that underwrote the IPO made $100 million of profits shorting the Facebook IPO. That’s on top of the $175 million in IPO fees the underwriting banks received for selling the deal. In addition, Goldman Sachs sold $1.09 billion of Facebook stock it owned for itself and on behalf of its clients in the IPO.
Facebook's value per user
May 18th - $90.72
August 18th - $45.30
For some reason, we are only worth half as much now as we were 3 months ago - how odd. Did we only click on half as many ads? Do we only upload half as many pictures for their facial recognition database? Do we only provide half as many juicy demographic/psychographic details about our lives?
Since our resident WF economists taught us in the OFFICIAL Facebook IPO thread that the value of a company is whatever someone is willing to pay for the stock, then obviously their revenue and LTV of their customers has dropped in half in just 3 months.
Strangely enough, a lot of us thought based on basic business valuation metrics that Facebook was clearly overpriced, but apparently the market is never wrong so I guess this will just remain one of life's great mysteries. How on earth could this have happened?!?!?
Facebook's value per user
May 18th - $90.72
August 18th - $45.30
For some reason, we are only worth half as much now as we were 3 months ago - how odd. Did we only click on half as many ads? Do we only upload half as many pictures for their facial recognition database? Do we only provide half as many juicy demographic/psychographic details about our lives?
Since our resident WF economists taught us in the OFFICIAL Facebook IPO thread that the value of a company is whatever someone is willing to pay for the stock, then obviously their revenue and LTV of their customers has dropped in half in just 3 months.
Strangely enough, a lot of us thought based on basic business valuation metrics that Facebook was clearly overpriced, but apparently the market is never wrong so I guess this will just remain one of life's great mysteries. How on earth could this have happened?!?!?
Facebook's value per user
May 18th - $90.72
August 18th - $45.30
For some reason, we are only worth half as much now as we were 3 months ago - how odd. Did we only click on half as many ads? Do we only upload half as many pictures for their facial recognition database? Do we only provide half as many juicy demographic/psychographic details about our lives?
Since our resident WF economists taught us in the OFFICIAL Facebook IPO thread that the value of a company is whatever someone is willing to pay for the stock, then obviously their revenue and LTV of their customers has dropped in half in just 3 months.
Strangely enough, a lot of us thought based on basic business valuation metrics that Facebook was clearly overpriced, but apparently the market is never wrong so I guess this will just remain one of life's great mysteries. How on earth could this have happened?!?!?
They milked regular joe investors out of their money with success. You can't put the blame entirely on wall street since they don't force investors to make trades, but imo this was yet another clever wall street scheme to print money by inflating the value of the company during the ipo and got a lot of greenhorn investors to believe the hype.
It was worth what people paid for it then, just as it's now worth what people are paying for it now. Something's value is entirely determined by what people are currently willing to pay for it.
I don't understand what's so hard to understand about that.
"Basic business valuation metrics" can be used to determine its value to you - as that is your own personal definition of what a company's value is. Not the market's.
The stock rising or falling in price does nothing to counter Guerilla's points about what value means.
Your argument makes no sense. So because it happened in only 3 months...therefore the market was wrong?
It was worth what people paid for it then, just as it's now worth what people are paying for it now. Something's value is entirely determined by what people are currently willing to pay for it.
I don't understand what's so hard to understand about that.
"Basic business valuation metrics" can be used to determine its value to you - as that is your own personal definition of what a company's value is. Not the market's.