Facebook IPO

[turninforhome10]

AOL replayed. Don Ho can sing the theme song, except this bubble is not so tiny. They are going to have to sell a lot of advertising. The numbers are very risky.

[RaceBookJoe]

Originally Posted by DJofSD

http://finance.yahoo.com/news/shorti...143541954.html

Cant short an IPO though. FB was easy money this morning, in @ 38.31, out @ 41.40 $ $ $ Not bad for 40 minutes.

[IBCNU]

They were originally bringing 337 million shares talked arnd 28 dollars which was boosted to 421.2 million shares at 38. This values the company at 104.2 billion....this makes this company more costly than almost every company in the Standard and Porr's 500 index. Add to that the fact the Zuckerberg paid a 1.5% underwriting fee when the industry standard is 6.5%,,...they needed to squeeze this lemon dry. They didn't leave enough on the table, you want to price these things lower so the shares have better support in the aftermarket. This IPO valued the company at 107 times trailing 12 month earnings. 28 year old kid with a hoodie and a bunch of digital pages. I'm on the institutional side and we flipped these babies...they are good for nothing else. Anyone here think these are a good long term hold?

[strapper]

All the insiders who got in at the good price will make money then bail out, leaving the Johnny-Come Latelys holding the bag. I don't think FB can be classed with companies like Groupon but I wouldn't go crazy with any internet stock. Social media companies really don't produce any tangible product. I don't even like the advertising format presently displayed by FB. They certainly wouldn't get my money if I was buying ads for a company.

[ArlJim78]

I don't get it. They don't make anything, they don't have subscribers. Do they have any revenue?

[rastajenk]

I was going to ask something similar.

In the Obama speech where he wished for a Sputnik moment, he cited Facebook and Twitter as great economic steps forward. I've seen other references to all the jobs and wealth created in some kind of trickle down effect, I guess. Uhhh, how so? I can understand that some programmers, policy enforcers, and some functions like that would be created. But that sure doesn't sound like a great economic engine to me. What am I missing?

[IBCNU]

3:24 eastern time now. After trading up $2.00....trading issue now. Flipper purge and exit. Almost amusing.

[Saratoga_Mike]

Originally Posted by IBCNU

3:24 eastern time now. After trading up $2.00....trading issue now. Flipper purge and exit. Almost amusing.

Poorly priced and sized...now holders must count on the beneficence of MS, i.e, the syndicate bid...looking at earlier trades I think they've already run thru at least 20% of that

[IBCNU]

Originally Posted by Saratoga_Mike

Poorly priced and sized...now holders must count on the beneficence of MS, i.e, the syndicate bid...looking at earlier trades I think they've already run thru at least 20% of that

My bloomberg chatter estimating exactly that (20%) of all indications of interest were fast money institutional players. Morgan Stanley and "beneficence" are hilarious in the same sentence.

[Robert Goren]

Originally Posted by rastajenk

I was going to ask something similar.

In the Obama speech where he wished for a Sputnik moment, he cited Facebook and Twitter as great economic steps forward. I've seen other references to all the jobs and wealth created in some kind of trickle down effect, I guess. Uhhh, how so? I can understand that some programmers, policy enforcers, and some functions like that would be created. But that sure doesn't sound like a great economic engine to me. What am I missing?

It is an advertising engine. It is place for companies to reach potential customers espicially young ones. The real question is "are people willing to put with advertising on their mobile devices like I-phones now that days of unlimited data are coming to an end?" That is what you are betting when you buy FB stock.
FB has about 2,000 employees and has 900 million subscribers. Anybody that has 900 million customers has economic power even the access to their product is free. Imagine if 900 million people accessed the free Past Performances on twinspires, what the handles would be?

[IBCNU]

Wow, they simply won't let FB go under 38. At least not yet. The bid is pinned at 38.
Would look horrible for underwriters if it closed under.

[IBCNU]

567 million shares traded today...every single issued share has changed hands! surreal.

[badcompany]

I must admit I'm a bit of a conspiracy theorist when it comes to the market, and I find it very coincidential that the Facebook IPO, and its accompanying hoopla, took place on a day/week when effectively all of the gains made by the rally early in the year have been wiped out.

[elysiantraveller]

Originally Posted by IBCNU

567 million shares traded today...every single issued share has changed hands! surreal.

Pump and dump....

[Robert Goren]

FB was a strange IPO. It was priced almost on the nose for the market. There was ton of bad hype on it for a week. Sure CNBC covered it to death, but everybody they had on said not to buy it on the opening day. When Fox or CNN had a story on it, they said the same thing. I wouldn't touch the stock with a ten foot pole which you should buy up every piece of stock you can afford. I just don't know how the end of unlimited data plans is going to effect the amount of time spent on it. I don't think anybody else does either. Besides I am a little worried it is going become like e-mail. Just a tool for advertisers, dumb business executives, and old fogies like me. When was the last time a kid sent an e-mail. To them it is all about twitter.