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(C|Net)   Facebook discovers there's a lot more suckers out there than previously thought   (news.cnet.com) divider line 8
    More: Followup, Facebook, blood, IPO  
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1186 clicks; posted to Business » on 16 May 2012 at 12:47 PM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-05-16 01:07:00 PM
With all the personal data they have on people you'd think Facebook could estimate the number of suckers out there.
 
2012-05-16 01:09:22 PM
Count me as a sucker.... I am hoping to get some shares allocated in the IPO.

You will probably never catch me using the place, but there is a lot of potential to make money from the millions that use it.
 
2012-05-16 01:40:20 PM
These announcements are sounding more and more like advertisements

/best IPO marketing ever
 
2012-05-16 03:12:41 PM

vgacolor: You will probably never catch me using the place, but there is a lot of potential to make money from the millions that use it.


You are absolutely doing it wrong if this is true.
 
2012-05-16 03:56:08 PM

vgacolor: Count me as a sucker.... I am hoping to get some shares allocated in the IPO.

You will probably never catch me using the place, but there is a lot of potential to make money from the millions that use it.


Facebook's going down harder than MySpace. Enjoy the ride.
 
2012-05-16 04:44:16 PM
Doesn't the rampant speculation necessitating increasing the shares of common stock indicate to would-be investors that they're going to lose a ton of money from this?

This is EXACTLY analogous to all of those fools who bought Spawn #1 back in the 1990s when comic book speculation reached an all-time high. The book sold over a million copies and became one of the bestselling comics ever published. The problem was that best-selling also meant that everyone had one, and it was worthless as a result. If memory serves, the comic is still only worth about a penny according to pricing guides.

Stocks are only worth something if you can make money off of them. Facebook has yet to explain how they're going to provide value of any sort to their shareholders. Rather, they're taking advantage of high demand and cashing out. The less exclusive the stock is, the less valuable it is, and the only people who benefit are the ones who are selling shares in the first place.
 
2012-05-16 04:45:24 PM

vgacolor: Count me as a sucker.... I am hoping to get some shares allocated in the IPO.

You will probably never catch me using the place, but there is a lot of potential to make money from the millions that use it.


Facebook is pulling down $4 billion a year in net sales. That puts their current worth, at most, at around $40 billion. Meanwhile the IPO puts the market cap over $100 billion, or 2.5 times higher than it should be. So Facebook will have to grow their monetized user base 2.5 times to even come close to the IPO price. Their growth is no longer exponential, however, and US growth is nearing zero. Most of their new growth will come from India and Brazil, where the user base is not nearly as wealthy as the US.

I have a feeling that this is going to end in tears.
 
2012-05-16 08:40:53 PM

Marcus Aurelius: vgacolor: Count me as a sucker.... I am hoping to get some shares allocated in the IPO.

You will probably never catch me using the place, but there is a lot of potential to make money from the millions that use it.

Facebook is pulling down $4 billion a year in net sales. That puts their current worth, at most, at around $40 billion. Meanwhile the IPO puts the market cap over $100 billion, or 2.5 times higher than it should be. So Facebook will have to grow their monetized user base 2.5 times to even come close to the IPO price. Their growth is no longer exponential, however, and US growth is nearing zero. Most of their new growth will come from India and Brazil, where the user base is not nearly as wealthy as the US.

I have a feeling that this is going to end in tears.


Google IPO'd at 15x revenue with net margins about 1/10th of Facebook's.
 
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