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Why do I need to play a company with a product others can make too? Do they even have a product?
I make enough money in other tickers. I had somewhat good thoughts, but Zynga should have proved a point to people.
Two things:
Big time institutional pumpers and dumpers will play this one at a wholly different level, which is usual and understandable.
Others who will play this one are the suckers and newbies hunting for the next Apple or Google. These IPOs are always designed for these suckers
Exactly, especially if you subscribe to the definition that a product is a tangible item that people pay for, then it will be interesting to see what products they sell that generate the 1.2billion or whatever the revenue du jour is posted, because most people use their Facebook "platform" for free.
And once it gets trading, lets not forget all the computer algos that may have a field day with this.
Remember what has happened to the Chinese Facebook.
RENN or Reren
Down to about $5 bucks
I guess the lesson that is "never" learned is, these IPOs are mostly for fat belly investors, insiders, promoters, owners and street thugs who promote them.
The ordinary investors, if they play nicely can end up with handsome profit otherwise they often become part of the show, "A sucker is born every internet IPO".
Disclosure: I have been a sucker with ZNGA already. Not sure if won't be a sucker with Facebook again
I think we will learn much more information once they file with SEC.
But 'retail demand' for Facebook shares and 'retail access' to Facebook shares are two totally different things.
In reality, no matter how much they want to buy them, retail investors will have access to only a tiny portion of Facebook's shares.
Facebook will actually be the first tech IPO in awhile that I will purchase. The company actually makes a profit and has growing revenue. You can't compare it to RENN because any Chinese person would tell you it's not popular. China's facebook is QQ which is also an instant messenger etc. I wish Facebook didn't wait so long to become public. Their growth is near the peak already. It will be difficult, but not impossible to continue high growth. It's not going to be a GOOG, but it's also not going to be a Pandora or Groupon.
Just announced, unless they change their mind, Facebook will issue $5B in stock through it's IPO.
Since they have 2.5 billion shares, then the IPO price will depend on what % of the outstanding shares they sell through the IPO.
Ex:
If they sell 10% of the stock and they expect $5B in the offering, then the IPO price will be
10% of 2.5 billion shares = 250 million shares. $5B / 250 million = $20 stock.
However, one analyst said they would not be surprised to see the $5B raised, maybe as high as $10B.
The lower number of $5B would have the intent of it being a successful IPO, where the supply fails to meet the demand = success.
And the less shares they offer, the more shares the company insiders keep.
If they come to market with 250 million shares then the other 2.25 billion shares will make them all rich, as we fight over the 10% they are selling.
Last edited by howard555; 01-31-2012 at 04:45 PM..
"Facebook would represent the largest global IPO by an internet company . $1.9 billion debut. Trading wouldnt start for months after filing for it. Experts say it could be valued at $75-100 BILLION"
Internet IPOs.
Vonage $531 Million - 2006
Zynga $ 1 Billion - 2011
Google 1.92 Billion -2004
"Visa raised $19 Billion in 2008. GM raised $18 Billion"
Their growth is near the peak already. It will be difficult, but not impossible to continue high growth.
This is what I was going to ask. How much room do they have left to grow? Seems like everyone that is going to be a facebook member probably is already.
Do you see them buying other companies like Google buying Youtube? Do you think they'll start there own youtube type site?...Will they get in the search engine game?...Start charging a monthly fee?
This is what I was going to ask. How much room do they have left to grow? Seems like everyone that is going to be a facebook member probably is already.
Do you see them buying other companies like Google buying Youtube? Do you think they'll start there own youtube type site?...Will they get in the search engine game?...Start charging a monthly fee?
Lets see,
can they have their own search engine? I doubt it. Even the mightiest Microsoft couldn't take on Google search with all it's star power and $$.
Youtube is a blackhole. I think google had invested lots of money and time on youtube and I don't know if it is profitable yet (but there were signs that youtube might be profitable in near future). Now, facebook with it's own youtube, like facetube? They might, if they are willing to shell out lot of cash
Now I would really like them to charge a monthly fee 'coz that will spell the doom and it can then join the long list of bacteria that has been eliminated from the planet
But I still think trading facebook stock may be lucrative in the short term
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