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(Forbes)   After 7 days, Facebook sets a new IPO record   (forbes.com ) divider line
    More: Fail, IPO, Facebook  
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25225 clicks; posted to Main » on 30 May 2012 at 9:56 AM (4 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-05-30 09:57:50 AM  
Ha Ha!
 
2012-05-30 09:57:51 AM  
Once this blows over I bet we're going to see a nice bump. If it drops down into the 25-27 range I'm probably going to buy
 
2012-05-30 09:58:11 AM  
IPO = I'm Pissed ON (Mr and Mrs. Shareholder)
 
2012-05-30 09:59:00 AM  

PawisBetlog: Once this blows over I bet we're going to see a nice bump. If it drops down into the 25-27 $8 - 10 range I'm probably going to buy

/FTFY
//Called this MONTHS ago.....
///Try doing teh maths
 
2012-05-30 09:59:53 AM  
Up 29 cents this morning. Rest of the US market is crapping itself
 
2012-05-30 10:00:57 AM  
How could it possibly fail if it's so hugely popular (and not actually selling anything)? Why doesn't the market simply respect that we need another billionaire?!?!
 
2012-05-30 10:01:29 AM  
A few rich people skimmed out a lot of stupid peoples money off of this. It was so predictable.
 
2012-05-30 10:01:41 AM  

Lord Farkwad: Ha Ha!


And to think I was just off to the googles to find a nelsonmuntzhaha.jpg to link... Good thing I checked here, I suppose...
 
2012-05-30 10:02:46 AM  

Grapple: How could it possibly fail if it's so hugely popular (and not actually selling anything)? Why doesn't the market simply respect that we need another billionaire?!?!


They're selling eyeballs. Something like 200 million of them. If only there were an industry that was interested in getting people's attention..

\lrn2economics
 
2012-05-30 10:03:35 AM  
I'm far from a Republican, but there IS a lot of rich folk hatred going on nawadays. Kid quit college to build a website that your ass can't live without and you want to see him fail. Smh. I'm sure they'll bounce back.
 
2012-05-30 10:04:18 AM  

img.photobucket.com

DON'T CARE LOL

 
2012-05-30 10:04:21 AM  
Wait? Are you saying that people might have learned something from the DotCom bubble? Wall Street learning a lesson? Truly, this is the end times.
 
2012-05-30 10:05:16 AM  

abfalter: A few rich people skimmed out a lot of stupid peoples money off of this. It was so predictable.


so you think they shorted it? The usual way rich people skim off stupid people's money is having the underwriter give them shares at the open price before the IPO, then when the frenzy of the masses to get shares is at its highest, the rich folks sell.

There was no opportunity for that to happen here, so I'm actually thinking some rich people got hosed, and are pretty pissed at their bankers right now.

We'll see where it goes from here.

Also whoever said it will get down to 8-10, I believe you're high as a kite, but we'll see what happens.
 
2012-05-30 10:05:31 AM  
Unlike.
 
2012-05-30 10:06:04 AM  

DROxINxTHExWIND: I'm far from a Republican, but there IS a lot of rich folk hatred going on nawadays.


There should always be a deep distrust and general hatred towards the rich, in any society.
 
2012-05-30 10:06:34 AM  
blogs-images.forbes.com

Really? You OKed this as the pic that would accompany each and every one of your articles?
 
2012-05-30 10:06:48 AM  
One London market analyst said that Greek government bonds were a better offer. Yep!

/smells like pets.com and wine.com in here
 
2012-05-30 10:06:53 AM  

Grapple: How could it possibly fail if it's so hugely popular (and not actually selling anything)? Why doesn't the market simply respect that we need another billionaire?!?!


It is selling a lot of thing. Get some education.
 
2012-05-30 10:07:01 AM  

Lord Farkwad: Ha Ha!


I agree. Anybody who bought facebook after the insiders carved off their chunk deserves this ride


t1.gstatic.com

www.mostlyuseless.info

 
2012-05-30 10:08:01 AM  

PawisBetlog: abfalter: A few rich people skimmed out a lot of stupid peoples money off of this. It was so predictable.

so you think they shorted it? The usual way rich people skim off stupid people's money is having the underwriter give them shares at the open price before the IPO, then when the frenzy of the masses to get shares is at its highest, the rich folks sell.

There was no opportunity for that to happen here, so I'm actually thinking some rich people got hosed, and are pretty pissed at their bankers right now.

We'll see where it goes from here.

Also whoever said it will get down to 8-10, I believe you're high as a kite, but we'll see what happens.


The rich people who made off like bandits are Facebook the company who got too much in the IPO, the Facebook stock holders who sold 2 minutes after it went public and the underwriters of the stock who got a percentage of the IPO which was set too high.
 
2012-05-30 10:08:12 AM  

DROxINxTHExWIND: I'm far from a Republican, but there IS a lot of rich folk hatred going on nawadays. Kid quit college to build a website that your ass can't live without and you want to see him fail. Smh. I'm sure they'll bounce back.


It's not him I'm laughing at.

He's cashing out and he's done it right.

It's the stupid mofos who handed him their money that I'm laughing at.
 
2012-05-30 10:09:07 AM  
It's impossible to make money directly with Facebook. The ads don't work, and so far it's just been a big experiment in social media marketing - companies figure there 'must' be a way to advertise on it, so they buy a bunch of ads, later discover no return, so they stop. Other companies see the ads, think they're working for someone, so they buy ads, later discover no return, etc.

We're now hitting the point where everyone's figuring out the flaw in the system. Facebook is good for one thing: connecting. I think Mark Zuckerberg always knew this, and that the real money was with investors. Now, he's ready to cash in and soon, he'll walk or change the whole system.
 
2012-05-30 10:09:22 AM  
Many people on Wall Street are now calling the FB IPO a pump and dump scam. And it is certainly beginning to look that way. Also JP Morgan-Chase and Goldman Sachs are probably going to face a rather uncomfortable SEC investigation. It seems that while they were buying up shares to keep the price up above the issue price on opening day, they were also loaning shares to other investors so the stock could be shorted. This is very illegal.

abfalter: A few rich people skimmed out a lot of stupid peoples money off of this. It was so predictable.


This is precisely what happened. The people who are losing the most money on this are retail investors. Worse, derivative trading of FB started yesterday, so we can expect that their worthless stock is going to be rolled into our 401(k)s, mutual funds and other derived investment instruments. So, just like with the mortgage crisis, we're gonna get farked again.
 
kab
2012-05-30 10:09:34 AM  
I CAN'T BELIEVE THAT INVESTING IN SOMETHING THAT DOESN'T ACTUALLY PRODUCE ANYTHING WAS A BAD IDEA.
 
2012-05-30 10:11:33 AM  

PawisBetlog: Once this blows over I bet we're going to see a nice bump. If it drops down into the 25-27 range I'm probably going to buy


So you really think Facebook has the capacity to increase its revenue about 3 times over so that its stock price is more competitively aligned with those of tech sector players like Apple and Google?

I'm still entirely unclear on why I should buy into a relatively young, still-unproven company with an absurd P/E and a murky business plan when I could just go buy Google or Apple stock and own establish, proven companies with actual, understandable business plans and realistic growth prospects.

If you're that desperate to ruin your life, just go try and hit a gold vein in the mountains out west or something. You'll have much better odds.
 
2012-05-30 10:11:48 AM  

Three Crooked Squirrels: [blogs-images.forbes.com image 136x136]

Really? You OKed this as the pic that would accompany each and every one of your articles?


based on that can we really trust his opinion on anything?
 
2012-05-30 10:12:06 AM  

bwilson27: DROxINxTHExWIND: I'm far from a Republican, but there IS a lot of rich folk hatred going on nawadays.

There should always be a deep distrust and general hatred towards the rich, in any society.



What? That's the bullshiat that keeps people divided. You can learn from history without being paranoid about it. And this hatred has shiat to do with being distrusting of the rich. This is just plain old, "that guy has more money, so fark him" snark. Its pretty weak. No one has ever been able to explain what the creator of Facebook has done to deserve it. I'm done white-knighting, now.
 
2012-05-30 10:12:48 AM  
I was set to believe this IPO was a stinker till this thread. Adamant believers that FB stock is good insulting people in broken English that disagree changed my mind. How can one argue with those kind of smarts
 
2012-05-30 10:13:18 AM  

MusicMakeMyHeadPound: DROxINxTHExWIND: I'm far from a Republican, but there IS a lot of rich folk hatred going on nawadays. Kid quit college to build a website that your ass can't live without and you want to see him fail. Smh. I'm sure they'll bounce back.

It's not him I'm laughing at.

He's cashing out and he's done it right.

It's the stupid mofos who handed him their money that I'm laughing at.


that exactly. He got his money, whatever good for him yay.

The people who actually thought THEY would become the new "joe Shmoe playing the market with tech stocks" and getting fleeced is what I enjoy laughing at.

The employees with a ton of unvested stock are watching this ticker every day, looking at their "vesting" date, and just hoping it doesn't bottom out too horribly.

but the idiot public who somehow bought into this and said 'i'm gonna be a tech stock guy now!' deserve every loss they are getting.
 
2012-05-30 10:14:05 AM  
I've been calling this stock muppet bait for months, but this is a stupid "record".

blogs-images.forbes.com

Gee, I wonder who will break the record of "Biggest Market Cap Declining Stock for the Days May 18, 2012 through May 29, 2012". Let me just fire up the time machine and put cyanide in Tylenol again. Maybe I can break this record!
 
2012-05-30 10:14:38 AM  

It's a Sunshine Day!: It's impossible to make money directly with Facebook. The ads don't work, and so far it's just been a big experiment in social media marketing - companies figure there 'must' be a way to advertise on it, so they buy a bunch of ads, later discover no return, so they stop. Other companies see the ads, think they're working for someone, so they buy ads, later discover no return, etc.

We're now hitting the point where everyone's figuring out the flaw in the system. Facebook is good for one thing: connecting. I think Mark Zuckerberg always knew this, and that the real money was with investors. Now, he's ready to cash in and soon, he'll walk or change the whole system.


There's a lot of truth to this, it's the argument I've made for some time now. I don't go to FB to buy shiat, and its a turn off to me to be spammed by companies asking me to like or join their page. I'm there to see cute pictures of friends families, and snarky comments about the quirks of people's lives.

That being said, I think a big portion of people on FB are the same ones that buy those ceremonial plates from the Franklin Mint, so I do think they'll be able to find a happy medium on advertising dollars, but agree it might not be worth 30/share right now.

This thread has talked me out of buying though, thanks FARK!
 
2012-05-30 10:14:39 AM  
From what I understand, there's plenty of reasons for this stock to continue to plummet:

1) Facebook's business is advertising, but they're not nearly as good as Google
2) Mobile is taking off, where Facebook is even worse at advertising
3) It's hard to see where Facebook's growth is going to come from
4) Facebook has been spending a lot of money on useless crap

So I wouldn't be surprised if it bottoms out in the $10 range.
 
2012-05-30 10:15:34 AM  

DROxINxTHExWIND: That's the bullshiat that keeps people divided.


I think the wealth itself is what keeps people divided, some hedge fund manager isn't going to go down to the trailer park to watch some NASCAR even if the fund manager loves it.
 
2012-05-30 10:15:56 AM  

Splinshints: PawisBetlog: Once this blows over I bet we're going to see a nice bump. If it drops down into the 25-27 range I'm probably going to buy

So you really think Facebook has the capacity to increase its revenue about 3 times over so that its stock price is more competitively aligned with those of tech sector players like Apple and Google?

I'm still entirely unclear on why I should buy into a relatively young, still-unproven company with an absurd P/E and a murky business plan when I could just go buy Google or Apple stock and own establish, proven companies with actual, understandable business plans and realistic growth prospects.

If you're that desperate to ruin your life, just go try and hit a gold vein in the mountains out west or something. You'll have much better odds.


I can't believe you're not an investment banker given how much more you know than the guys who you know, actually stake their careers on accurately pricing the stock.
 
2012-05-30 10:16:31 AM  

DROxINxTHExWIND: I'm far from a Republican, but there IS a lot of rich folk hatred going on nawadays. Kid quit college to build a website that your ass can't live without and you want to see him fail. Smh. I'm sure they'll bounce back.


NewsFlash: If your ass can't live without Facebook, you're a complete retard.
 
2012-05-30 10:16:43 AM  
The real crime starts with derivative trading....
 
2012-05-30 10:16:43 AM  

DROxINxTHExWIND: I'm far from a Republican, but there IS a lot of rich folk hatred going on nawadays. Kid quit college to build a website that your ass can't live without and you want to see him fail. Smh. I'm sure they'll bounce back.


He's not failing. He just converted much of his share of the company into a few billion dollars... just at the time that the company's growth potential is probably approaching its limit. The revenues minus expenses for the coming years will probably be less than they were in the past---but he cashes out just in time. Only kicking myself for not short selling a hundred shares for a quick pickup.
 
2012-05-30 10:17:27 AM  
Wait until it hits a dollar then buy. Since Myspace is still around, they probably will be too.
 
2012-05-30 10:17:58 AM  

Turbo Cojones: The real crime starts with derivative trading....


Leave us alone.
 
2012-05-30 10:18:44 AM  
The only people that think that Facebook is a multi-billion dollar company aren't old enough to vote. The rest of us are laughing at the idiots that are buying the stock.
 
2012-05-30 10:20:07 AM  

PawisBetlog: abfalter: A few rich people skimmed out a lot of stupid peoples money off of this. It was so predictable.

so you think they shorted it? The usual way rich people skim off stupid people's money is having the underwriter give them shares at the open price before the IPO, then when the frenzy of the masses to get shares is at its highest, the rich folks sell.

There was no opportunity for that to happen here, so I'm actually thinking some rich people got hosed, and are pretty pissed at their bankers right now.

We'll see where it goes from here.

Also whoever said it will get down to 8-10, I believe you're high as a kite, but we'll see what happens.


There was that opportunity. Not as good as some stocks, but as I recall it was at around $45 on the first day of trading when the big push occurred. And, yeah, I bet there was a lot shorted because it was plain that the $38 price was too high.

You are right, it won't get down to $10, but I could easily see it hitting the low $20s

DROxINxTHExWIND: I'm far from a Republican, but there IS a lot of rich folk hatred going on nawadays. Kid quit college to build a website that your ass can't live without and you want to see him fail. Smh. I'm sure they'll bounce back.


Considering I can't recall the last time I used Facebook, I think I can live without it. My issue isn't some guy getting rich, he deserves it, but the valuation was ridiculous and the people that tried to justify it "but so many people use the site" deserve to lose any money they put up. As the article says, the question isn't is FB valuable, but how valuable. The best thing about this is that it shows the social media bubble may not be that bad, if FB had ballooned I would have been very scared for the future.
 
2012-05-30 10:20:10 AM  
I don't give facebook any money. I don't click on the ads. I don't buy Zynga cash or whatever. I look at pictures and play some games. I'm sure that's worth something.
 
2012-05-30 10:20:26 AM  
I'll buy a share for a buck. I'll frame it and hang it next to my pets.com and zombo.com stock certificates.
 
2012-05-30 10:20:26 AM  

DROxINxTHExWIND: No one has ever been able to explain what the creator of Facebook has done to deserve it.


Somebody actually made a movie about it.
 
2012-05-30 10:20:27 AM  

lemurs: From what I understand, there's plenty of reasons for this stock to continue to plummet:

1) Facebook's business is advertising, but they're not nearly as good as Google
2) Mobile is taking off, where Facebook is even worse at advertising
3) It's hard to see where Facebook's growth is going to come from
4) Facebook has been spending a lot of money on useless crap

So I wouldn't be surprised if it bottoms out in the $10 range.


Those are certainly worthwhile arguments, but I just feel like if it was that easy there's no way the underwriters could have missed by that much. Maybe we're still overvaluing the number of eyes they can put on those ads,

I also haven't heard much about their app store and what that might do revenue-wise. Companies like Zynga are making a FORTUNE with microtransactions, and right now FB sees very little of it. If they approach the app store like Apple did and start taking a cut of everything, that seems like it would be a significant boost in dollars. Grandma pays a lot of money for those daisies in her garden in Farmville. Also that translates over to mobile better and better as the phones get more full featured.
 
2012-05-30 10:20:32 AM  

rudemix: I was set to believe this IPO was a stinker till this thread. Adamant believers that FB stock is good insulting people in broken English that disagree changed my mind. How can one argue with those kind of smarts


Maybe their English is worse than yours because their class also spent some time learning punctuation?
 
2012-05-30 10:21:17 AM  

PawisBetlog: Also whoever said it will get down to 8-10, I believe you're high as a kite, but we'll see what happens.


That would be more in line with revenue.
 
2012-05-30 10:21:34 AM  

DROxINxTHExWIND: I'm far from a Republican, but there IS a lot of rich folk hatred going on nawadays. Kid quit college to build a website that your ass can't live without and you want to see him fail. Smh. I'm sure they'll bounce back.


Actually, I despise Facebook and I'm tired of my idiot family members annoying me with requests to join it. I think its a sad commentary on modern life that building such an idiotic thing was such an easy path to success and I think it says a lot about just how simple-minded and short-sighted most people are that it's so "necessary" to nearly a billion drooling dolts.

That being said, Mark Zuckerberg isn't the problem here, the problem is the money men who used the FB IPO as an opportunity to scam gullible idiots. Zuckerberg isn't the one who set the price, he's not the one who ran around comparing it to Google, he's not the one who pulled the rug out from under all the initial small investors.

So, yea, as it's a day that ends in 'y', the real problem here is the out-of-control bankers who just ran another bait and switch on "main street" and will not only get away with it, but be rewarded richly for their malicious con.

kab: I CAN'T BELIEVE THAT INVESTING IN SOMETHING THAT DOESN'T ACTUALLY PRODUCE ANYTHING WAS A BAD IDEA.


Oh, look, another person who doesn't understand the concept of a service industry....

PawisBetlog: I can't believe you're not an investment banker given how much more you know than the guys who you know, actually stake their careers on accurately pricing the stock.


I'm going to go out on a limb here and say you probably have no idea how incredibly and stupidly ironic that comment is in a thread about the Facebook IPO....
 
2012-05-30 10:21:48 AM  

HotWingConspiracy: DROxINxTHExWIND: No one has ever been able to explain what the creator of Facebook has done to deserve it.

Somebody actually made a movie about it.


He dropped the "the". That's worth a billion bucks right there.
 
2012-05-30 10:21:57 AM  

abfalter: A few rich people skimmed out a lot of stupid peoples money off of this. It was so predictable.


Eh, it's more like rank and file investors bought the stock without reviewing any data about Facebook. I'll leave whether or not any laws were broken to the SEC and the courts, but it was glaringly obvious that Facebook was overvalued. The company has relatively little income and their future profitability will depend on advertising revenue. And major media outlets have been running stories for the last six months pointing out how much weaker Facebook's advertising business is than Google's (for example, the average web surfer clicks on 1 out of every 250 Google ads; with Facebook ads it's 1 out of 2,000). And in the days leading up to the IPO, there were non-stop stories about how Facebook was valued more than many of the largest US corporations despite having next to no revenue, and for the valuation to hold, the company's revenue growth needs to be exponential beginning this year.

So there was more than enough data out there to know that this was a bad stock buy -- you didn't have to be a finance expert to realize this.
 
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