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Yeah, who ever heard of a successful services company? /sarcasm
If I were going to invest money in a tech company it would ba a company like apple that actually CREATES something. Products that people actually wants. You know iPhones,iPads, Mac computers, not a company that doesn't create anything, that's just shuffling money around like a wall street bank, with the illusion of making money. We went through this in the 90's with the dot.com boom/bust. Look it up.
b-b-b-b-b-b-ut Facebook is different and not a dot bomb. They have smarter people working there and a genius at the helm.
Can someone honestly tell me what facebook does that's particularly novel? Since it's a services company and doesn't produce widgets, what NOVEL services does it provide?
The original owners made out very well on this deal and the brokers did even better. Anyone surprised? Now the sellers can buy the company back at a considerable discount. I'll bet they will.
After Friday's nearly flat close and Monday's 11 percent
plunge, Facebook shares closed 8.9 percent lower at $31 on
volume of 101 million shares. At that price the company has shed
more than $19 billion in market capitalization from its
$38-per-share offering price last week.
I call shananigans. Something smells fishy, here, and it has Mr. Zuckerberg written all over it.
Zuck and the rest of that crew pulled a fast one on Wall Street and Investors in general. Facebook does have revenue in the 9-10 billion per year range from "advertising" but they are not going to be able to sustain that as ROI is not justifying the cost to advertise on Facebook (See GM).
The other problem is that they offer no consulting in the Proper way to advertise on Facebook. It's basically pay us and you are on your own. They are also spending money buying companies with large Social Media followings (Instagram, Lightbox etc.) to gain subscribers not new revenue streams. They are spending billions to acquire companies that generate little to no revenue. In game ads are a joke and most people ignore them anyways.
They banked on getting a huge number of subscribers in order to trick people into thinking that they could actually advertise to 600+ million people when in actuality the algorithm they use takes keywords from people's status updates and advertises to that. GM would have been better off creating their own landing page and separate website for tracking purposes and used Twitter to get the link out. Facebook is garbage and their stock will continue to plunge until they actual provide relevant services and software to people or companies.
Morgan Stanley cut revenue forecasts for Facebook in the days before the offering...
Seems to me, a clear case of insider trading. Tell me Martha am I wrong...
Most IPO's are a result of insdider trading. Those that own shars of the stock pre-IPO have far more information about the company than Post IPO because pre-IPO are ususally involved with management or investors in the company and they need the information to establish an IPO price.
Facebook seems like a underpants gnome business model, not to mention a lot of other webstartups.
1. Collect Underpants/Collect millions of users and their data
2. ?
3. Profit
^ Data Warehouse/Business Intelligence.
The problem: Facebook is caught between its users being opposed to the idea, versus a business model that requires the idea, even though the idea is technically in place in a variety of ways outside of Facebook.
Facebook is the devil, and the banks are its minions
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am I wrong...
