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(Guardian)   Valuing a company at 34 times revenue is just good common sense, especially when it's never turned a profit   (theguardian.com) divider line 9
    More: Obvious, IPO, revenues, stock markets, restricted stock  
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3415 clicks; posted to Business » on 07 Nov 2013 at 1:33 PM (37 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-11-07 01:56:13 PM
5 votes:
"Markets can remain irrational a lot longer than you and I can remain solvent." - John Maynard Keynes
2013-11-07 02:54:10 PM
2 votes:

van1ty: It is a fact that the Facebook stock is 25% higher today than its IPO price


And Cisco, an established company with quarterly dividends, is up more than 30% over the same period with far less volatility. GE is up 40% over the same period, again, much more stable and also with good dividends.

What's your point? "It went up" doesn't really mean a whole lot in investing.
2013-11-07 02:35:52 PM
2 votes:
It makes sense for Twitter.

Sure, the Facebook IPO was a failure for you the investor because you didn't get your initial bump, but FB got more than they were worth.  It was a huge win for them.

The more overvalued a company is at the IPO, the better a deal it is for that company.
2013-11-08 10:58:36 AM
1 votes:

I sound fat: DerpHerder: van1ty: vonmatrices: van1ty: Drollia: When it flops like Facebook did, everyone is going to be "shocked"

Facebook IPO:  $38 a share.

Current price per share:  $48


Yeah those people who bought Facebook stock sure got hosed.

You're missing the in between period where facebook was around 18$.

So just wait and buy twitter when it hits the trough.


What on earth does that have to do with whether or not Facebook bombed.  It is a fact that the Facebook stock is 25% higher today than its IPO price.  That is a fantastic ROI for just over a year.

It all depends on if they have the revenue stream figured out. FB didn't really get it figured until right around the IPO. FB would seem to be at an overall advantage in revenue and size as well as time so well see how it turns out.

The facebook trough, while predictable, was made worse by hype.  It did deserve to drop, as I said in the last post, but once it started, it started a dropping frenzy.


Completely agree. I was just saying that they actually found viable ways to monetize it and got the revenue stream more hashed out (still not where it needs to be). That's why you saw it climb back up. I still wouldn't be involved in that stock as I don't see social media and or facebook as a strong long term marketing tool (just my opinion). I do think that twitter is even more overvalued than facebook was and is in a less advantageous position. I'm about to graduate college with a marketing degree (I want to go into advertising) and its annoying that half the internships I've been applying to consist of 'managing socialmedia' as the main aspect. Outside of data mining I don't see social media as the great marketing tool everyone seems convinced it is. I've clicked on maybe 1 or two targeted adds ever and those were to look into the data mining.
2013-11-07 07:19:09 PM
1 votes:
It doesn't matter whether the company can make a profit.  What matters is whether churning the stock can make a profit.  And for those favored individuals allowed to buy at $26 and can sell at $45, it will be very profitable.
2013-11-07 04:14:26 PM
1 votes:

Nexzus: How does twitter make money?


downstairs: how on earth are they going to make any money?


Ads and "promoted" tweets, mostly. You can also effectively buy a "trending" hashtag that sticks around whether it's actually popular or not. The NFL does it all the time.
2013-11-07 02:58:57 PM
1 votes:

Rapmaster2000: It makes sense for Twitter.

Sure, the Facebook IPO was a failure for you the investor because you didn't get your initial bump, but FB got more than they were worth.  It was a huge win for them.

The more overvalued a company is at the IPO, the better a deal it is for that company.


Which is the only point. These companies aren't trying to be companies, not like IBM and GE or anything like that -- they just want to cash out and make sure the angels and venture guys get their returns too. Going public isn't for the public, or the compnay, it's for the few dozen people with options that get to be millionaires now. Once the thing's public, who gives a shiat. See: Groupon.
2013-11-07 02:29:17 PM
1 votes:
What kind of growth strategy do they have?

"Sign up for what will become a massive advertising platform. We also plan on selling your data. But you know, you can post bullshiat for strangers to read. Maybe you'll get on Gawker."
2013-11-07 02:18:33 PM
1 votes:

Reverend J: I would short the fark out of that stock if I had any money.


Atomic Spunk: "Markets can remain irrational a lot longer than you and I can remain solvent." - John Maynard Keynes

 
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