Is Social Networking going Public?

[Robert_Whited]

Facebook recently was in this conversation, but they stepped back from IPO with a stock plan restructure. Demand Media though has hired Goldman Sachs as an underwriter in preperation of an initial public option.

Sal Morreale, IPO expert for Cantor Fitzgerald, said it was too early to tell what kind of price the company would try to get for a public launch. But he said there will definitely be an enormous amount of interest on Wall Street, given the Internet presence of Demand Media and its potential backing by a financial heavyweight like Goldman.

 

[oROEchimaru]

I'd like to try an ipo but i always see them go from 15$ opening to like 50% less a year later... i'm not sure if its splitting or lowering market value.

also is this an actual SM or no?

 

[CosmicWobble]

I'm no stockbroker but does facebook or any of that other social networking stuff actually produce anything that makes money?

 

[nissanztt90]

I'm no stockbroker but does facebook or any of that other social networking stuff actually produce anything that makes money?

Advertising space with huge amounts of internet traffic? I dont know if thats considered a "product" though? It certainly produces advertising space though which fits your question...no?

 

[[Tripod]MajorPayne]

Advertising space with huge amounts of internet traffic? I dont know if thats considered a "product" though? It certainly produces advertising space though which fits your question...no?

Look at Google's stock. They essentially do only what you just said:

Advertising with huge amounts of pageviews.

It's definitely a "product" in the moneymaking sense, and Google has made billions doing it.

 

[MV75]

With GS behind it, it's guaranteed to be worthless in a short time, and they'll skip off merrily to their vaults with more stolen money.

 

[sfsuphysics]

Yeah, lets invest our money in a heavy weight like Goldman's...who the SEC recently said they defrauded their own investors out of about a billion bucks!!

 

[[Tripod]MajorPayne]

Yeah, lets invest our money in a heavy weight like Goldman's...who the SEC recently said they defrauded their own investors out of about a billion bucks!!

The SEC is investigating ALLEGED fraud. Goldman has had a huge target on their back since the financial collapse began, since they made money off of being in a good position during a bad market.

Let's not crucify GS before some actual verdict comes out, since we know nothing other than the SEC is looking into some allegations.

 

[spinelli]

I'd like to try an ipo but i always see them go from 15$ opening to like 50% less a year later... i'm not sure if its splitting or lowering market value.

also is this an actual SM or no?

Stock splitting is not secret. You can find that info readily enough. I am barely even a novice when it comes to investing but I'm always leery of IPO's, especially those who may be overvalued due to hype and name recognition as opposed to any sound structure. That never lasts but savvy folks can still make money. Great stinking heaps of it.

 

[Madman0]

I'd like to try an ipo but i always see them go from 15$ opening to like 50% less a year later... i'm not sure if its splitting or lowering market value.

also is this an actual SM or no?

Any software that tracks stock pricing will take splits in to account if they are within the date range you are looking at.

 

[HOCP4ME]

I'm no stockbroker but does facebook or any of that other social networking stuff actually produce anything that makes money?

Facebook is actually very profitable. Unlike YouTube, it consistently makes money every year, and revenue only continues to grow.

Targeted advertising is one of the greatest economic marvels of the 21st Century. Consumers get to use expensive services for free, in exchange for viewing adverts that help them find products they already needed. A true win-win situation.

 

[CosmicWobble]

Look at Google's stock. They essentially do only what you just said:

Advertising with huge amounts of pageviews.

It's definitely a "product" in the moneymaking sense, and Google has made billions doing it.

True, I suppose but surely a business with only one revenue stream is on shaky ground... I know Google is still raking in the big bucks but all it takes is something new to come along and they are screwed since it is their only source of income.

Maybe I am a bit too traditional but businesses were always encouraged to diversify to make sure stuff like that didn't happen.

 

[BoogerBomb]

For such a supposedly massive internet presence, I have never heard of any of their six owned and operated websites.

 

[JohnleMVP]

FaceBook also sales limited edition (1 of 10,000) digital flowers for $1. Can't beat that profit margin.