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(USA Today)   If you bought Facebook stock during its IPO, congratulations, for a few minutes this morning you almost broke even on it   (usatoday.com) divider line 6
    More: Fail, Facebook, IPO, Facebook shares, blood, morning  
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1894 clicks; posted to Geek » on 31 Jul 2013 at 3:40 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-07-31 04:30:46 PM
2 votes:
There's a significant problem with the modern tech IPO (actually, the problem is in how investors perceive it).  The true purpose of these IPOs is not to pull in a large sum of capital for investment and expansion.  The purpose is to allow the founders and the venture capital people a mechanism to cash out.

Capital costs for computing are ridiculously low, and there's no 'inventory' that has to be created and pushed into the meat-space distribution chain.
2013-07-31 05:32:17 PM
1 votes:

Esc7: thornhill: HMS_Blinkin: Is there anyone that didn't see that coming a mile away?  FB stocks were so over-pumped before the IPO, it was almost guaranteed that they'd peak during their first day or two of trading.

All the data was out there about how poorly their ad revenue compares to Google and yet the valuation assumed they'd somehow surpass Google.

But this is the nature of speculation...

People are assuming that having 1 billion users must mean something.  That this social network will be important enough to users for them to suffer advertising in large enough quantities to make a profit.

Even though internet advertising has been around since the 90s and Google ostensibly makes it bread and butter that way, I'm still not convinced that there's just enough money in web advertising for it be where all the money comes from.


The main difference between Google ads and all other web ads is that Google ads are tied to people searching for stuff. So if you do a Google search for trash cans, you're way more likely to click on the paid ads for companies that sell trash cans rather than a Facebook ad that's based on your likes. Or to put it another way, Google ads are targeted by active behavior, and Facebook ads are passive.
2013-07-31 04:48:03 PM
1 votes:

Esc7: thornhill: HMS_Blinkin: Is there anyone that didn't see that coming a mile away?  FB stocks were so over-pumped before the IPO, it was almost guaranteed that they'd peak during their first day or two of trading.

All the data was out there about how poorly their ad revenue compares to Google and yet the valuation assumed they'd somehow surpass Google.

But this is the nature of speculation...

People are assuming that having 1 billion users must mean something.  That this social network will be important enough to users for them to suffer advertising in large enough quantities to make a profit.

Even though internet advertising has been around since the 90s and Google ostensibly makes it bread and butter that way, I'm still not convinced that there's just enough money in web advertising for it be where all the money comes from.


You just have to know this one weird trick to make money selling online ads.
2013-07-31 04:27:51 PM
1 votes:
The IPO was successful from a certain point of view.  Masses of people gave Facebook money for a "share of ownership" which they only valued because of other people potentially valuing it much higher in the future.

Facebook goes home with a bag of money and people sit at home with virtual pieces of paper they hope other people will pay them more for.  (who hope other future people will pay them more for. (who hope other future people will pay them more for))
2013-07-31 04:16:41 PM
1 votes:
This is why I still have my hoard of Beanie Babies.
2013-07-31 04:03:41 PM
1 votes:
img.photobucket.com
 
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