Wow! so many FB pricing bashers! I hardly read any one speaking positively about FB pricing. Back in 2000 dotcom bubble everyone was throwing money on dotcom firms who had just A website. They never feared if they could ever make money. Does these folks know how to price or invest themselves ?.
We humans survived on planet earth because we socialize. If animals do same, dinosaurs could have ruled earth for ever and we may have not existed !
Facebook connected us virtually in all social networks. It is a evolution from physical social network to virtual social network.
It is not up to determine FB valuations merely on assets, profits. We NEED to give them time to grow!. They just came out as IPO!. Do you really want bash them and kill all of it, just because FB was not priced correctly ?. Paper valuations are merely artificial. How does it matter to us if it is 100B$ or 500B$ company?. Did we not learn our lessons from past?
Alas! thanks to fb, I can connect to all my family/friends since from childhood.
Let's be generous and let's assume a 50% growth of the EPS ($0.43 * 1.5 = $0.65) next year.
Let's be generous again and let's give it a higher P/E multiple of 25
... so 25 x $0.65 = $16.25/share
Even with these figures, we can see that at $34, FB is valued in the stratoshere. Short this puppy.
IPO valuation is not always made same. "Potential" to convince plays bigger role in valuation. For example, if you convince that you have potential to land on Saturn, a pack of investors with line up with you. Then you have pressure to deliver it or attempt to deliver it. A business cycle work it same way. We need wait and watch if FB can succeed with their business model to deliver it. But simply hyping and then bashing will not lead into any productivity.
With a phone you can also connect to your loved ones and friends. Also, with skype you can talk to them face to face for free. How does lurking on someone's page "connect" you to them? If you really cared about connecting to these people you would simply pick up a phone rather than adding them and occasionally checking their profile.
Think this way. You can post this message by calling 1000's of people with phone. Why are using yahoo finance? Because you can reach them quickly than spending months effort of time. Each technology has it own advancement over others, otherwise we may be still hunting for food like a "cave man"!.
Social good doesn't make money. If that was their goal they shouldn't have gone public. Facebook took all of MySpace customers when they commercialized the site. What do you think will happen to FB now that profit and profitability are king?
Going public helps firm to build assets and grow faster. Every business needs time prove itself. If they successful they will grow, if not some other business will take over. Look into search engine, google was not the first one build it, there were many. And now Google is not JUST search company, they do many things. So does FB needs time to prove itself. Killing with slogans does not help, it will only help traders to make money.
Did first version of Google, Netflix, Amazon made any money. FB has many potential of making money not mere ads. Many apps can be developed using FB user base. Do n't forger Google makes ad's money through business not from user!. May be 10 years down the road FB has potential to give ID cards to all humans on earth! FB can play role in recording your history and information a
They need time? seriously? FB before IP and FB now is still the same...having difficult in generate revenues from advertisement to match the current PPS/valuation.
Facebook is currently at about 65X consensus 2013 estimated earnings per share. That is way too too expensive. And I bet you the small retail investors like us aren't the one who are selling but rather big institutions/brokers/fund managers. I think they see that it is very difficult for them to make any profits anytime in the near future and those entities above don't hold on to stocks like small-retail-long-investors unless they see a bright horizon because they have to report profit/loss to their clients.
When there is no difference, then why all of sudden this yelling about?. Is it make quick money? Then it is not called investment. Speculators can make money quickly as well as they loose money quickly.
Do not forget MS held price well on first day, not the quick/small investors.
Dont be an idiot. U live and learn. Why making the same mistake again.? Once u get burned, u do not want to get burned again.
Where have u been? U do not belong now 2012. u should go back in time to your dot.com .
..and how much money have you spent on ads that originated on FaceBook? Ask your friends if they are buying products because of FaceBook. There answer will mostly be no. When advertisers figure out that this is hype, the ad placements and revenue will dry up.
how much does the company take in....?
How much does the company spend?
what's left over?
what is a gamble on future "take in"?
when you add it up then FB is over priced and might be better at 20 to 23 a share....
Goldman sacs spent their money in FB and lost also JP morgan's investments also lost in other areas....truth is corportation's have no place in our gov...let them fail....the reason we can't let them fail is because they pay for politicians campaigns.....but at least they are American...OOPS...maybe not. oh my....buy gold...you can't trust any of them....wall street is hosting necrosis....