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.
LNKD currently trades at a P/E north of 1,000X. It is obvious that investors are trading on LinkedIn’s future earnings, but Forward P/E analysis tells the same story. Based on earnings estimates over the next 12 months, LNKD’s Forward P/E is 108.3X. Based on average estimates of FB’s future earnings, its stock will be valued at a Forward P/E of 60X. Heck, even if the company’s earnings stay flat – which would be about as likely as the Mayan calendar being correct – FB stock would still be undervalued compared to LNKD.
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.
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....
Facebook is a smart and sound company with over $4 billion in revenues. That's twice as much as google when it ipo-ed. Not to mention facebook now has 10 billion in cash to pry away even more talent than it has already and gobble up other venture companies. It will become a social network, venture capitalist company of mega proportions. It has more eyeballs on it's site than google. FB will do well. Just be glad you can buy at $34 instead of $74.
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 .
Facebook squeezed every single nickle they could out of the investors. This is after Mr. Zuckerberg says he doesn't care about money.
The perceived value of the stock is going to dictate the price per share. Don't you think people who lost money are going to be angry?
So people who lost money should not feel bad? I didn't invest in FB because I never believed in their value nor where the shares where headed but a lot of people did. The price was hyped and people where ripped off by both Facebook and the Wall Street bankers.
Why shouldn't they be mad. Wouldn't you be mad if you were lied to.
This ipo was a travesty. Thats it.