Who's ready to buy into the most inflated stock in history?
I'm taking bets on the opening bid...who wants some action?
On a serious note, is anyone honestly planning on touching the stock before their first earnings report?
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The Contrarian Edge blog -
FB IPO has been set!
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How would this impact Zynga (ZNGA), any idea?
I opened a june call strike $8 position right before they announced...
I opened a june call strike $8 position right before they announced...
I'm actually a bidder tree hamster if I'm wrong then I will pay Squirl to chase you down from the tree. I'm actually want to invest in Renn Renn. Now with that IPO set in place it should get a nice bid.
It's going to be interesting to watch. We might see some of that Apple madness for a while. But I think FB has already peeked as a social network.
Hard to say what Zynga will do. It might ride the wave.
Hard to say what Zynga will do. It might ride the wave.
My problem with FB is that it's more of a trend than it is anything else. Most of their traffic comes from younger people and their tastes/interests sway back and forth like a tree in the wind. Heck just look at high schools 5 years ago. What is "cool" now is completely different from then. Actually the "cool" kind of things now generally were very uncool then. FB is more pushing for businesses and games now more than it is a socialization platform.
5-6 years ago a flip-phone was the THING to have. Take a look at how the companies who pioneered those are doing now (namely sprint nextel). Even if companies try to innovate, people's interest change and those companies and more often than not permanently coupled withe the "fads" they became known for.
True but you don't see Abercrombie and Fitch or any record studios trading at $100B either. MTV's owner, Viacom is only trading at $25B and it has a lot more than just MTV. Even AAPL, the world's biggest trend seller, only trades at a PE of 10. FB is pushing a PE of 100 and LNKD runs around 1000. That sounds more like a super bubble than an investment opportunity. At 100x it's earnings, the company can't EVER hope to pay that back in your lifetime.
Thoughts on Amazon the same, Treehamster?
Amazon is a distributor that cut out the costly storefront. It SHOULD go higher but people are retarded. It should probably be around $240 right now since earnings KILLED and it's still not above it's all time high back when the market was MUCH worse off.
I know treehamster. My friend watch Renn Renn its P/E is about 60 rightnow if the facebook IPO goes out correctly it should go to 100 P/E well see.
Tree - FB may be a trend, but I see it as one with some staying power. I know of a lot of businesses and professional salespeople who are using FB to promote their business through company pages.
BTW... I usually don't like to get into IPOs, especially early in the game, but LNKD is beating the S&P over the past 52 weeks. Wish I was a buyer at $60 as it now is back to approx $108. Perfect hindsight ... every time. Will FB go a similar route?
BTW... I usually don't like to get into IPOs, especially early in the game, but LNKD is beating the S&P over the past 52 weeks. Wish I was a buyer at $60 as it now is back to approx $108. Perfect hindsight ... every time. Will FB go a similar route?
tampa Jake is correct people don't know this but there is huge amount of retail stores and businesses looking into social networking as a medium of advertisement. I can tell you think because I work for this company and many other that are looking to pay face book applications. Amazon is a prove how our industry is changing from a store front retail stores to a online web store. It's just a matter of time until you see this applications directly from face book so people can directly buy from face book. There is is just of security measures that they have to change before that happens and you might think you like to see the product before you buy it. Well I shouldn't tell you this but we are working on it. We have a AI technology that will revolutionize the online retail industry. You can think of it as a sims world in the real world but the patentship is a war right now and probably will be years until we can implement this techonology and there is a lot of security problems that facebook still has but is dealing with. The facebook you see now will be much different the one you are to see in the near future. And the amount of money this comapanies are paying is tremendous and tampa jake is correct on LNKD and the outperformance in the markets and it has a P/E of 960. Which in my perspective is insane. As well check facebook Retain earnings, revenue from LNKD..its comparison is not even to compare.
The Contrarian Edge blog -
Here is a thought for an eager Facebook investor: Google revenue – $40 billion; market capitalization $200 billion (plus $40 billion of cash). Facebook revenue $4 billion; market capitalization $100 billion. So Facebook has to grow revenue 10x for you to double your money. Good luck!
I'm not saying FB isn't worth more than LNKD, of course it is. I'm saying social networks as a whole are just these companies with insanely over inflated price tags. Their price is purely a fad. When the fad goes away, the price will tank as the company behind the curtain really isn't THAT great. Now I'm not saying FB isn't worth a lot, but I think it's worth closer to like $20B, MAYBE $25B. Even that is based on highly speculative and lofty goals of the company.
Bubble!
Well $85B-$95B...so they'll get a price of $95B from investors. Any bets on the opening bid for the stock? At a 28-35 range...I'm giving a guess of $45. Anyone think it'll open higher than that?
Well, if you want to play a cheap play and be on the ground floor of flash sales... take a look at the NO!/NO! Penny stock LUXR. LuxeYard is only one a a few established to press the flash sales and has a good story... It can probably be had for less than a dollar...
BUT WITH ALL THE HYPE ABOVE... IT'S A PENNY STOCK AND WITH ALL PENNY STOCKS... IT CAN BE A MANIPULATED AND IS A HIGHLY SPECULATIVE PLAY THAT PROMISES RICHES IN RETURN AND USUALLY FAILS TO PRINT IN LARGE BOLD LETTERS THAT LOSS POTENTIAL IS EXTREMELY HIGH!!!!!
BUT WITH ALL THE HYPE ABOVE... IT'S A PENNY STOCK AND WITH ALL PENNY STOCKS... IT CAN BE A MANIPULATED AND IS A HIGHLY SPECULATIVE PLAY THAT PROMISES RICHES IN RETURN AND USUALLY FAILS TO PRINT IN LARGE BOLD LETTERS THAT LOSS POTENTIAL IS EXTREMELY HIGH!!!!!
I'm looking for something to bail me out of my Green Mountain Coffee losses. Could this be it? At 20X revenue it must have a bright future. That Matt Zuckerman seems quite visionary to me.
Haha, Zuckerberg doesn't care about money (obvious given how he spent $1B on a 13 man operation), he just wants to have something that changes the world. Unfortunately, that only works if you are money conscious in the process as Jobs was. AAPL may have been a public company but after Jobs took it back over and was chairman, he ran it like it was a private company. I don't see Zuckerberg being able to do the same thing with Facebook simply because he's not the people person and salesman Jobs was.
Haha, new price range of 34-38. I'm betting the IPO price will be around 42 with an open of 50 and a market cap around 115-120B. Who's ready for a giant market negative position for Q3's earnings?
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