Facebook Stock Hits New Low

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It's a shame that there was no way of knowing all of this before the company went public. Wait, did I say a "shame?" I'm pretty sure I meant "sham." :rolleyes:

Despite Facebook's massive reach, investors are quickly coming to the reality that the social network's valuation may be out of whack. Despite a massive user base of nearly 1 billion people, many consider its $100 billion value to be too high.
 
Good. I'm going to enjoy watching this thing splutter and tank.
 
Damn, I wanted to short sell the stock right at the beginning but that's not allowed until a few days after an IPO. Still room to go much lower I think....
 
It was screwed up in the first place and still is. They were estimating it to be worth $100 PER PERSON, which is rediculous because most of the money is made from advertising and thats really only if someone clicked on an ad. Most people I knew that use FB ignore all the ads.

If anything, they should have valued it at .05 to .10 per person, making its true market value of being roughly between; $50-$100 mil. AT MOST! It shouldnt even be that, I mean hell. I would assume a company like that maybe grosses $25 mil a year in advertisement, but Im not 100% sure.

This was a burning ship before it even went public.
 
I think Facebook is overvalued as well, but I think 2 days on the Market is a bit early for all the gloom and doom everyone is already pushing.
 
and nobody should be surprised.

I feel bad (but don't have much sympathy) for anyone who invested in FB.
 
I laugh at people who value Facebook based on only their user size. SMH, Business degrees should be in higher demand.
 
Probably a good thing that the Average Joe never really had a chance to get in big with the IPO (they never do on big IPO's - you gotta have tons of money and know people).

This could be the death of Internet Investing for a long, long time.
 
I was reading about this yesterday. HuffPo says a lot of the blame went to NASDAQ's computer glitches because it couldn't handle this kind of volume. Traders had no way of knowing for hours whether trades were completed or not.
 
I think anyone who bought this in the beginning was pretty silly. I'm sure a lot of people bought it expecting it to go up before it went down, but the pricing was so far out of whack and contentious that I wouldn't touch it with a barge pole, regardless of whether buying or selling.
 
I was reading about this yesterday. HuffPo says a lot of the blame went to NASDAQ's computer glitches because it couldn't handle this kind of volume. Traders had no way of knowing for hours whether trades were completed or not.

That had part to do with it, but I don't think it was the whole truth. The problem is, it was quite obvious that Facebook would drop in price before the IPO, with or without the NASDAQ glitches.

Despite all my negativity in these threads, it really isn't targetted towards Facebook in any way, but the stock market.

Just a few bad signs:

The $15 billion lawsuit prior to the IPO.
Goldman Sachs selling half their shares pre IPO (this was the biggest warning sign of all).
The last minute change to raise the IPO price from $25-$30 per share to $34-$38 per share.
The fact that they decided to open it up at the highest possible valuation of their new increased price. (This is typically a warning sign that investors are trying to make all their money off of selling their shares at the opening at the expense of others).

And when it opened:
The delays.
That 82 million shares were sold within the first 30 seconds (if this doesn't drive down investor competence, I don't know what will).
That the stock barely closed over it's IPO price.
That despite the stock clearly going down from it's open, every investment show and article with a BUY rating (especially those with money invested in Facebook already).

These are just a few warning signs that should have scared anyone with at least basic investing knowledge off of buying the stock. It was targetted towards ignorant individuals to prey on them and shift the loss to them.
 
I wonder how many active members FB has, like people that have been on in the last 30-90 days. Not to mention duplicate and spam/advert accounts. I know people that have 3 or 4 personal accounts and accounts set up for business or community concerns.

I wouldn't be surprised if the actual number of active users is less than 100 million. That's still huge, but not $100,000,000,000 huge. My guess this will settle in the mid 20's somewhere, for a while anyway.
 
Facebook wont survive, and it has nothing to do with this 'IPO'..

It's valued based on one sole factor: 'Customers' with freakishly short attention spans who play their shit games, and are also selfish and impatient, so they spend REAL MONEY on a free game to achieve some level of manufactured status and achievement... problem is, THESE 'CUSTOMERS' get bored easily, and quit playing.

The cycle shortens, as word of mouth and general short-attention span apathy kicks in. People quit the games, but new customers aren't replacing them, so it's a dwindling market.

If you bought this stock, you're not just stupid, you need a fucking keeper.
 
PS: The IPO closed JUST above its opening price ONLY because sales were suspended and artificially boosted thru brokered false purchases which weren't completed before the close of the day, so it artificially inflated the value of the stock JUST enough to keep it from closing below initial offer, without money having to change hands or stocks actually moving.
 
I really don't understand why people are calling this a "flop" and how Zuckerburg is "loosing all this money". The target price was raised several times from 28 up to the 38 it was finally set. The 420M shares sold at that price from the company. Zuckerburgs shares are still worth much more than the inital 28$/share. The people who are losing money on this are the idiots who thought facebook was worth anything near 38$/share. Facebook isn't losing money, they don't lose a dime when the share price moves. They made all the money when they sold the shares at 38$ each. Zuckerburg is also still in the black IF he decides to sell some shares compared to the 28$ initial offering. That being said, I still expect the share price to drop below 10$ before it hits rock bottom. It's a shame the options market tripped a circuit breaker already. :(
 
Yeah I reckon it will drop to around $5 a share and by then the party will be over

So guys, what do we reckon will be the next fad site that all the hipsters and freetards will flock to?
 
I really don't understand why people are calling this a "flop" and how Zuckerburg is "loosing all this money". The target price was raised several times from 28 up to the 38 it was finally set. The 420M shares sold at that price from the company. Zuckerburgs shares are still worth much more than the inital 28$/share. The people who are losing money on this are the idiots who thought facebook was worth anything near 38$/share. Facebook isn't losing money, they don't lose a dime when the share price moves. They made all the money when they sold the shares at 38$ each. Zuckerburg is also still in the black IF he decides to sell some shares compared to the 28$ initial offering. That being said, I still expect the share price to drop below 10$ before it hits rock bottom. It's a shame the options market tripped a circuit breaker already. :(

Zuckerberg didn't loose a dime. He made a ton of money. Since founders of companies are rarely allowed to sell all of their shares, paper valuations are the e-penis of billionaires but it can't be spent.

On the other hand, if you are an investor who bought at $45, you are screwed and deserve what you had coming to you.
 
I highly doubt a billion people just up and stop using a site that they visit several times per day just because the stock dips.
 
I really don't understand why people are calling this a "flop" and how Zuckerburg is "loosing all this money".

MZ lost over $2bn of his net worth in the last couple of days lol. Doesn't matter how rich you are, that's a lot of money (albeit paper) to lose.
 
So glad that I had to wait 3 days for fund to show up into my account. I wanted to buy some stocks, I was hoping it'd raise and then I'd sell before it plummeted. It never really got up though, so yay! I didn't miss out on ANYTHING.
 
I would love to think this is the beginning of the end of FB.
FIrst the stock depletes, then the company needs to find more revenue streams making the user feel less like they are getting a free service.
Tick tick tick, boom! No more FB.
Myspace makes a comeback and we start all over until the return of Christ.
 
I was trying to look at the NASDAQ site to see what are the top 10, by $ value, not number of trades, American-traded companies. Couldn't find the result; I'm sure I eventually could find some report but... The point being, I'm not a financial person by any stretch, but I hear that this FB value is more than Ford, GM, GE, etc. I found that to be unbelievable. When FB gets parted out and sold because it flops, what is there to sell? Biographical data? Some servers? A few desks, chairs and a water cooler? At least if Ford were to be sold off, there is something there. I just don't get it. It appears to me that it was completely over-valued and should be somewhere around 1/3 of what it was initially offered at. I don't what FB's demise (don't have any account) but I think it's a shell game being played by FB and the banks that valued it. Just my $0.02
 
I was trying to look at the NASDAQ site to see what are the top 10, by $ value, not number of trades, American-traded companies. Couldn't find the result; I'm sure I eventually could find some report but... The point being, I'm not a financial person by any stretch, but I hear that this FB value is more than Ford, GM, GE, etc. I found that to be unbelievable. When FB gets parted out and sold because it flops, what is there to sell? Biographical data? Some servers? A few desks, chairs and a water cooler? At least if Ford were to be sold off, there is something there. I just don't get it. It appears to me that it was completely over-valued and should be somewhere around 1/3 of what it was initially offered at. I don't what FB's demise (don't have any account) but I think it's a shell game being played by FB and the banks that valued it. Just my $0.02

What you're looking for is listings by market cap.

http://en.wikipedia.org/wiki/List_of_corporations_by_market_capitalization

For just the NASDAQ, this list is a few years old...

http://seekingalpha.com/article/194270-top-25-nasdaq-stocks-ranked-by-market-cap
 
MZ lost over $2bn of his net worth in the last couple of days lol. Doesn't matter how rich you are, that's a lot of money (albeit paper) to lose.

You missed my point. MZ is still up 5$/share from the original IPO price. He's lost nothing.
 
You missed my point. MZ is still up 5$/share from the original IPO price. He's lost nothing.

Um. Currently hovering sub-$33. That is not $5/share up from the IPO.

Perhaps you missed that word. It's key. The original IPO price was 28$ it was raised three times before the final valuation was set. The price (at the time of that posting, 12:02pm EST) was 32.96$/share, i.e. 5$/share.
 
I'm going to hedge a bet that a few of the lead people at FB jump ship with their bonuses, before this IPO fiasco falls like a lead balloon.
 
I'm going to hedge a bet that a few of the lead people at FB jump ship with their bonuses, before this IPO fiasco falls like a lead balloon.

I dunno about Facebook employees, but a lot of companies with employee stock options won't give them their shares unless the employees are let go. If you jump ship, you lose it all.
 
I dunno about Facebook employees, but a lot of companies with employee stock options won't give them their shares unless the employees are let go. If you jump ship, you lose it all.

For typical employees, there's usually a lockdown period of 180 days after the IPO in which they're unable to sell their shares. MZ and upper management are most likely unaffected by this price, so it's only the lower 'peon' employees who are going to miss out.

Now, I'm unsure of how the laws work with termination, but I can't see it being legal at all for a company to take away all stock options you have paid for. If someone could enlighten me on this area, it would be appreciated.
 
Now, I'm unsure of how the laws work with termination, but I can't see it being legal at all for a company to take away all stock options you have paid for. If someone could enlighten me on this area, it would be appreciated.
It depends on the terms of the stock options. Just like the match on 401K. I can say I'm going to match 1000% of every dollar you put into the 401K, and you vest after 70 years of working for the company. Guess what, I'm never going to pay anyone a dime on the match for the 401K because no one will ever work 70 years.

I've personally seen companies going day for day vestment after 5 years on the match. That means if you work there 4 years 364 days, you won't see a dime of the match. If you work there 5 years and 1 day, your only going to see 1 days worth of match. Read the terms, they're important.
 
Now, I'm unsure of how the laws work with termination, but I can't see it being legal at all for a company to take away all stock options you have paid for. If someone could enlighten me on this area, it would be appreciated.

Employees don't pay for stock options, they're an incentive and receive them as part of their pay package. Usually stock options which are awarded have a vesting period, e.g. if the vesting period is 3 years and you have been at the company for 4 years (receiving stock options each year) and you left, you would only be entitled to the stock options you received during your first year. These are always specified in the contract so the employees knew what they're signing up for.
 

LOL! Who would have sunk money into a fad website? The only thing worth a dime on it are the selling of people's personal business. When Facebook announces that they are going to sell your address, phone number, etc to others then that will be when they start making money. The only reason that I have an account is because the younger people in MMO's these days think it's a great tool to announce raid times. They are too lazy to make a website and FB is just easier.

I'm surprised that investors that will buy anything are avoiding this one. I was expecting this one to hit Yahoo prices so the crash could be even more spectacular.
 
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