Facebook Files For $5 Billion IPO

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Facebook has filed the papers for its initial public offering and the press are already using terms like "breathless speculation." Ummm, what?

Ending months of breathless speculation, the 8-year-old social networking company has submitted registration documents with the U.S. Securities and Exchange Commission that set preliminary goal of $5 billion. Facebook had discussed raising as much as $10 billion. Final pricing will not be set for months, and the size of the IPO probably will increase with investor demand.
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Is this good or bad that they're seeking less than previously stated($10 bill) for public investors?
I'm unfamiliar with valuations.
 
AnonymousUser said:
Is this good or bad that they're seeking less than previously stated($10 bill) for public investors?
I'm unfamiliar with valuations.
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Less infaltion per stock, thats pretty big.

Having realistic expectations is more healthy for longevity.
 
only suckers would invest in this.

how many of its users are real people anyway ?

I have maybe 5 dormant FB accounts, which I used for mfgr deals.
 
dr.kevin said:
only suckers would invest in this.

how many of its users are real people anyway ?

I have maybe 5 dormant FB accounts, which I used for mfgr deals.
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Short term (5 to 10 days) seems worth it just because of the hype, no?
I wouldn't own this long term for anything though.
 
dr.kevin said:
only suckers would invest in this.

how many of its users are real people anyway ?

I have maybe 5 dormant FB accounts, which I used for mfgr deals.
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doesn't matter about how many accounts it has, it matters based off of equity. The sites equity isn't made up, they get money for advertising and special priveledge accounts. I don't know what their numbers are but the site is obviously worth a lot of money, maybe not 100B but its not opening up at that anyways.

People said you would be moronic to invest into google (search?! lolz...).
 
FB haters still really have no idea how much of a tool facebook is now, its a real 'product' at this point. Myspace comparisons are pretty lol. It's as engrained in everyday computer users use just as much as google is at this point. Just look at their investor list. Ridiculous the big names in there.
 
4saken said:
FB haters still really have no idea how much of a tool facebook is now, its a real 'product' at this point. Myspace comparisons are pretty lol. It's as engrained in everyday computer users use just as much as google is at this point. Just look at their investor list. Ridiculous the big names in there.
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serious question.
Can you summarize how much of a tool it is now ?

I haven't used it except to get coupons and free shit.

besides that and posting messages, what else is FB good for ?
 
dr.kevin said:
serious question.
Can you summarize how much of a tool it is now ?

I haven't used it except to get coupons and free shit.

besides that and posting messages, what else is FB good for ?
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Data mining hundreds of millions of users, millions/billions in advertising revenue, brand name strength/power(a movie was made about the rise), etc. FaceBook is ingrained in the average populations brain 100x times more than MySpace ever was, true story!

Also, it's the first of its kind. If you doubt that than you don't understand what FB does behind the seens. He met with the President before, think about it....seriously!
 
AnonymousUser said:
Short term (5 to 10 days) seems worth it just because of the hype, no?
I wouldn't own this long term for anything though.
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I'm sure plenty of people said the same thing about Google. Personally I'm going for it and hanging on. I don't even use Facebook but the company's long term potential seems obvious.
 
I would short this stock so fast, it will tank within 3 years of IPO. Without a doubt.... they all last no more than 5 years...myspace, livejournal, all those "big names" from back then. Look at yahoo, who would of thought they'd be nothing now? NOBODY
 
convexion said:
I'm sure plenty of people said the same thing about Google. Personally I'm going for it and hanging on. I don't even use Facebook but the company's long term potential seems obvious.
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You might be right assuming their plan works out and/or FB doesn't get outdated too quickly. Or ran over by another company when it comes flying out of the gates with an all new social site (and features) that puts FB to shame.


Their plan:

1. User Expansion. Especially breaking into China for the hundreds of millions of potential users there. However Facebook is currently illegal in China although some there still use it.

2. New Ad Implementation.They have to bring their advertising to a new level. Bigger ads, more ads, more sales through ads, etc. So I guess the implementation is key as too many ads or too obtrusive will make users flee the site.

3. Make games more people are willing to pay for as a lot of people play FB (Zynga's) games but very very few actually pay for them (Around15% of FB's revenue).





My plan for them (Plus things listed above) growing:

1. They must sell a lot more users personal information to a lot more people willing to buy it.

2. They need more polls, more questionnaires, just more data mining needed of the users.

3. They must make and keep FB fresh (in the minds).

4. Possibly, even making the site a very low fee subscription based service since they have the only game in town at the moment.

5. Buy out all competitors before they get wind in their sails.

6. Put their servers on the moon and declare the moon their colony. This is a big one!





So... more than likely you're wrong. :D
 
Facebook is becoming too much like Myspace. They should have kept it simple, so as to continue expansion. If Facebook becomes "complicated", it will die.

No way it should go public. It's not a "real" business.
 
Greene420 said:
I would short this stock so fast, it will tank within 3 years of IPO. Without a doubt.... they all last no more than 5 years...myspace, livejournal, all those "big names" from back then. Look at yahoo, who would of thought they'd be nothing now? NOBODY
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I take it you're not much of an investor? Shorting something for three years out seems like a weird way to invest, no?

What if it rides high for 2 1/2 years and only tanks the last six months. I made money on riding it up and riding it down. Plus shorting it means you'd have to (at some point) purchase the stock at market price a few months out, not years. Unless you got it like that which I might initially doubt. You never know though.


That said, I understand your viewpoint, you don't like FB...lol. However as a short term investment, I do! ;)
 
NukeDukem said:
Facebook is becoming too much like Myspace. They should have kept it simple, so as to continue expansion. If Facebook becomes "complicated", it will die.

No way it should go public. It's not a "real" business.
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1. FB made a little under $400,000,000 in annual revenue for 2011.
2. Profit of a $1,000,000,000 thus far.
3. 400,000,000 + users visit the site daily(daily)!

Not sure what you consider that but I consider it a business no matter what you consider it, seriously!
I don't like the site for personal use either but saying it's not a business is naive at best.
 
At this stage Myspace was already doomed. Facebook is still growing stronger. I'd hardly compare the two.
 
I didn't say it wasn't a business. I simply stated it's not a "real" business in the sense that it shouldn't go public. Investors are not going to make money on Facebook. You cite daily users, great. They won't come back if Facebook starts charging fees or clouding the site with unnecessary ads.
 
Going public will ruin this website, mark my words the shareholders will run this thing into the ground with greed.
 
NukeDukem said:
I didn't say it wasn't a business. I simply stated it's not a "real" business...
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Sorry, I somehow missed that.

NukeDukem said:
Investors are not going to make money on Facebook. You cite daily users, great.
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I disagree completely. Private investors are already making money off of their investment and will continue to do so especially when it goes public, even if it doesn't grow, imagine if it does though!

NukeDukem said:
They won't come back if Facebook starts charging (very low) fees(presumptuousness) or clouding(No one said "clouding" it, non-obtrusive implementation is key here) the site with unnecessary ads.
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Brill(Enemy of the State): You're either incredibly smart or incredibly stupid. We'll see.
 
Hah! Anonymous, I don't think you realize how casual the bulk population of Facebook really is. Maybe I underestimate the younger folk as I am an old timer at 27, but my core belief is that Facebook only has this kind of traffic due to SIMPLICITY and the fact it's FREE!

You think once it goes public it's going to stay on the same business model that made it what it is? No, I don't. Even small fees and small ads WILL erode it. It's at the peak, thats WHY the private owners ARE going public NOW. They want to cash before the crash.
 
NukeDukem said:
Hah! Anonymous, I don't think you realize how casual the bulk population of Facebook really is. Maybe I underestimate the younger folk as I am an old timer at 27, but my core belief is that Facebook only has this kind of traffic due to SIMPLICITY and the fact it's FREE!
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You do realize they didn't mention making it a pay service in their recent initial public release announcement right? They might never make it a pay site, it might remain free. I was only giving my opinion where you read that tidbit. (Yes,yes, I know they discussed it privately before but the fact they never did start charging or the fact they never publicly announced they ever would might make on think they already know that)



NukeDukem said:
You think once it goes public it's going to stay on the same business model that made it what it is? No, I don't. Even small fees and small ads WILL erode it. It's at the peak, thats WHY the private owners ARE going public NOW. They want to cash before the crash.
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No, it MIGHTgrow! At least for a couple more years before it inevitably collapses, as all things do(I don't mean all things end in 2 years, I mean all things end). My point is I could make a nice chunk of change in the meantime while you wait idling just to say I told you so(2+ years down the road....lol).
 
Well you go ahead and dump your dollars into public Facebook. Your arguments against mine seem to imply you agree with me Facebook is primed to fail, you simply overestimate the time it will take in my opinion. Just realize it's going public for a reason, so short term pub investors like yourself can give them money right before they tell you sorry.
 
NukeDukem said:
Well you go ahead and dump your dollars into public Facebook. Your arguments against mine seem to imply you agree with me Facebook is primed to fail, you simply overestimate the time it will take in my opinion. Just realize it's going public for a reason, so short term pub investors like yourself can give them money right before they tell you sorry.
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I stated FB is doomed in their long-term way before you and I started masterdebating with one another of details. Short-term I think FB will rise like the sun in the morning(well, the way the sun seems to) for what might be a couple nice big months. I of course then see it falling like a rock when Zuck goes for that billion or three in cash for his early retirement. If you think he's cashing out day one or month one, I strongly disagree!!!! (Like Hercules strong).

I won't be there when that happens though so meh....fuck it.



I'm investing a hundred k though fyi.
 
Zuck is already worth 10+ billion. If you think Zuck is making an IPO because he needs or wants more cash, get real.

I think you're delusional if you think there's going to be big months after this.

I also think if you're investing 100k, I wish you I'm wrong. But then again, I never gamble with my money. Good luck.
 
NukeDukem said:
Zuck is already worth 10+ billion. If you think Zuck is making an IPO because he needs or wants more cash, get real.
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Actually he is worth 17.5 bill according to forbes/wiki. I guess I meant he wants more cash an/or he thinks he has something (a business model) he can run farther with, no? I don't get why he'd go public if he already has everything he wants and he analyzed it and knows FB won't work out on the open market. So again, in your opinion, why?


NukeDukem said:
I think you're delusional if you think there's going to be big months after this.
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Why? (If you already explained some, explain again in detail...lol)
 
Reasons like these are why I think you're wrong.

From Forbes.com referring to Mark Zuckerburg

What the CIA failed to do in 60 years, Zuck has done in 7: knowing what 800 million people--more than 10% of the world's population--think, read and listen to, plus who they know, what they like and where they live, travel, vote, shop, worship. U.S. users spend more time on Facebook--on average 6.3 hours a month--than on any other site.
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I always looked at Myspace and FB as sites for the sheeple, those who are blissfully ignorant of the data being mined from them as they happily click their way through the pages/ads of FB. Of course things like browser cookies, etc. do similar things for data mining purposes, but gladly volunteering to post gobs of personal info into a site that has more than once fallen afoul of SQL server injection etc., is just foolhardy at best. *Far* too much personal info is becoming externalized and readily available on the net, and we have all seen where many a "tool" has posted something that has cost them a marriage or a job, or even a jail sentence.
Since this round of social media apps over the past several years is considered Net 2.0, I wonder what "3.0" will bring? Perhaps something called "the hive/mob mind". It would require real time uploading of thoughts and/or memories. The world of Ghost in the Shell comes to mind a bit. The basics are there already: cloud computing for storage, wireless data devices that are almost always on, and so all we need is the final brain to net interface, unfettering the instantaneous flow from the mind to the world without physically entering it in. Data security is always behind the curve as far as keeping up with ways to break into it. I would hate to have my own mind "hacked".
 
^^ i am fully aware of it, i am sure many are ignorant to the data google gets from you and yet they still use gmail, google docs and everything else.

i agree, i use facebook as a tool to share info with multiple people in one place, i dont put my phone number on facebook, the data i provide i dont care if it is on the internet.
 
Some people are new to business concepts....


Of course FB will surge once it goes public. Investors are really wanting to invest into FB. Once it does go public, people will BUY BUY BUY BUY, increasing value in FB. Then right as value of the company is ripe, people will want to cash out and SELL SELL SELL.


A FB bubble is expected to happen but that will be on the short-run and will flatten out steadily in the long-run.


As long as FB keeps their business model going now and begin to expand their ideas, similar to Google, it will be successful.

And whoever is the moron that said that FB is not a "real" business... If they made revenues and incurred costs... they're a real business.
 
dr.kevin said:
serious question.
Can you summarize how much of a tool it is now ?

I haven't used it except to get coupons and free shit.

besides that and posting messages, what else is FB good for ?
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Consider it as the perfect launching pad for your day. Everything is on FB now. Schools/businesses/organizations/clubs/etc/etc.

For me personally, i get my Hockey League scheduling, team updates etc through it. I get my kids daycare news up to the minute, especially with inclement weather w/o wondering whats going on. My work will use it to communicate with employees(aside from other avenues as well), etc etc. But if the user utilizes it more than just a 'social' platform you can basically get everything you need information wise for the day through it.

I am sure I could sit here and keep listing the convenience it affords having everything in one place if i just kept thinking about it.
 
If I had tons of cash, I would get in on that for a quich money double.
 
dr.kevin said:
all the average joes will be losers.
some will lose their shirts with this
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So are you saying there will be no upside to this stock and it will go down right out of the gate? I ask because I need clarification as I find that highly unlikely.
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In other news I learned this about getting in on Facebook pre-IPO. I didn't know the way it worked so disregard this message if you did. I'm just trying to share information.

Christian R.
Investment Consultant
Investment Firm (doesn't matter)

Minimums to buy into the Facebook IPO are for accredited investors only; starting at a minimum of $1,000,000 to buy into the IPO. You’d have to have an account with the underwriter (JP Morgan or one of the other market makers) to participate. Also, even if you fit the aforementioned qualifications, they’re having a lottery whereby they randomly select clients who have met the qualifications and requested the IPO. In other words, extremely difficult to participate.
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I guess I'm such a newb I thought I was special :(
You live and learn. Still will buy into it day one though.
 
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