Skip to comments.Facebook Shares Fall
Posted on 05/21/2012 8:34:23 AM PDT by WellyP
Facebook shares [FB 33.64 -4.5918 (-12.01%) ] plunged more than 13 percent on Monday, falling below the $38 price of the initial public offering, in the social network's second day of trading as a public company.
The stock sank without the full support of the company's underwriters, leaving some investors down nearly 25 percent from where they were Friday afternoon.
Facebook's debut was beset by problems, so much so that the Nasdaq said on Monday it was changing its IPO procedures.
(Excerpt) Read more at cnbc.com ...
Don’t buy individual stocks (unless you really know what you’re doing—and very few people actually do).
And people were surprised that the FaceBook Insiders were in a hurry to dump as many shares as they could, as fast as they could.
The average employee was worth $3 Million in shares - what would you do, Cash in your $3 Million or hold on and hope that FaceBook wasn’t another MySpace? I’d take the $3 Million so quickly your head would spin. Would I still work? Yup - and hope more stock options came my way. But, my financial worries would be few, and far between.
Actually there was only one problem: the initial offering price was too high. Perhaps way too high.
That didn’t take long.
>>Dont buy individual stocks (unless you really know what youre doingand very few people actually do).<<
THE best advice ever given on this or any other board. If you want to buy individual stocks, just go to Vegas or Atlantic City or the nearest Indian Casino and drop your $ on Black 17 — your odds are better in those places.
Changing the ticker code from FB to FU.
Zuckerman’s losing Face.
It looks like fb is in freefall.
That might have something to do with the fact that THERE IS NO PROFIT MODEL FOR FACEBOOK!!!
But that founder dud is walking away with big bucks no matter what. I guess Buzz=Bucks sometimes.
I overheard two people on Friday at work talking about the price they got for Facebook stock. One of them paid 40 dollars a share. I said nothing except “Wait til Monday”. All those people that became instant millionares on Friday had to sell it to someone. If you fell for the hype on Friday and bought, all you did was buy the shares that were being dumped to create those millionares. At the end of trading on Friday the underwriters had to come in and support the price or it would have dropped then instead of today. A social networking site? And just what product does that produce?
Employee’s lockup period may be as much as SIX months. Ride ‘em to zero!
Lots of talk over the weekend that Facebook was originally valued at $6-7 a share, based on revenues.
It will eventually find it’s way to that value, after the issuers can no longer legally prop the stock, in a month.
The stupid muppets get fleeced again.
I have always stayed away from Initial Public Offerings, IPOs. A falling share price for an IPO is nothing new.
And unless I am mistaked the IPO price includes a markup to pay for legal fees, registration fees etc. Nothing that goes to creat value for the company.
Ponzi scheme fail.
The same hopeless hype is propping up Obama’s poll numbers in the press.
Anyone look at what happened to MySpace’s stock?
I suspect that some of the crowd left MySpace for Facebook simply because NewsCorp bought it.
Facebook has many users who use the service but aren’t happy with it. The cool kids could all find a new home within a month they are that fickle.
Facebook is nothing more than an idea and a website. The principle value is in the value of the computer hardware and the good will of the company. The stock was based on some idea that a website company with a few million dollars worth of computers and hardware and an idea that anyone on the planet can steal is somehow worth more than all the combined hard assets of GM, Chrysler, Ford, Peterbilt, Caterpillar, Nissan, and Mazda.
One would have thought people would have learned something from the internet bust in the 1990’s.
History repeats itself and there is a sucker born every minute.
If you’re reading this Zuckerman, I know you’re on your honeymoon, but you have to pull out and get back to the office....NOW!
Give it time it will hit $100. It’s just falling due to jitters but later on, watch out! Bang zoom to the moon. FB is the most popular website in the WORLD second only to Google, it has close to a BILLION subscribers and gets more everyday. I say it goes below $20 and stays around the teens and thats when Im buying.
Somebody bought into the hype. PT Barnum was right on.
You can't lose what you never had. Paper is just paper.
PT Barnum didn't really say it.
I also hate the friggin Timeline and I laugh Facebook’s stock debut to scorn.
“PT Barnum didn’t really say it.”
And the word gullible isn’t in the dictionary. It’s not. I just looked. Check it yourself. Go on.
Thank you. GREAT article. The fact that Barnum copied the giant and then claimed he had the real one and the other guy had the fake was hilarious. The guy was a born politician.
The lyrics from the first stanza of the musical “P T Barnum” are an accurate description of not only the FB IPO buyers, but also the obamaBots:
“There is a sucker born every minute
Each time the second hand sweeps to the top
Like dandelions up they pop,
Their ears so big, their eyes so wide.
And though I feed em bonafide baloney
With no truth in it
Why you can bet Ill find some rube to buy my corn.
Cause theres a sure-as-shooting sucker born a minute,
And Im referrin to the minute you were born.”
sigh - I got stuck in meetings last week and forgot to short it...
Indirectly this time. The next wave of visible losses will be the broker who hyped this fraud. How many retirement accounts have real money interest in THAT loser?
Something will continue to hit the fan on this one.
If I recall correctly, they were targeting an initial offering of around 500 million shares. I’m not sure if that’s on top of what management assigned themselves in order to keep control...I think it was something like 57%. If that means they have another 500 million+ shares out there, or even if it means they have 260 million or so and they’re selling 240 million, then that’s the Mona Lisa question. It’s worth a fortune because there’s only one of them. Other than that it’s just a picture and WalMart has pictures for 19.99.
Hopefully, buyers aren’t pretending that they’re getting in on the ground floor of something with 250 million to 500 million shares out there to be bought.
Why? If he cashed out just 10% of what he got, he's laughing all the way to the bank.
If you don't like the Timeline there's a way to disable it. It's working for me with Apple Safari browser, Firefox and Google Chrome but it doesn't seem to work for Microsoft Internet Exploder....
For the new generation, Barnum will live on getting credit for this saying. He had to have been studied heavily by the Dem politicians for his loose use of the truth.
Old timers call that Whistling Past the Graveyard.
They've been proven right 95% of the time.
But what the heck. No guts no glory; go for it.
Spreading the wealth IS a good thing.
Say what? Isn't inference a most powerful engine of thought?
I know for a fact I’m not smart enough to know which is the best stock to buy at the best time at the best price and then again to sell it at exactly the best time or the best price.
Since I am not that smart, I am not dumb enough to buy individual stocks.
It looks to me that the inside buyers (you know, “normal” people like Nancy Pelosi and Facebook employees) bought in low in a sweetheart pre-buy option - and then they all sold on opening day.
They made millions.
The lumping proletariate? No, you suckers have to buy in the market and it tanked because the sweetheart’s were selling out and the initial IPO was over-valued by, like, 600% because the same dip $%^#s who wrote the Stimulus Bill and lost $2bn at Morgan Stanley (&c.) are the ones who put a random dollar figure on a Facebook share.
Sucks to be a sucker.
Poor Man’s Summary: This IPO is a great example of Liberals making liberals rich in the only way that liberals know how: Scamming the public to make money using money they never actually possessed.
Consider the following scenario:
Unlike FB, Google does have inherent advertising value. I want to buy a widget, I search Google, and Google returns hits, along with paid advertising that concerns widgets. Google does not depend so much on personal information from me in order to do this. I generally do not mmind this, as I am looking for widgets anyway. 'Course, I do limit the amount of information that I allow Google to gather about me - as a security precaution ...
Conversely, all FB has is personal information. It will have to develop algorithms to create "best guess" probabilties that I do or do not want a widget - based on the information in my account. It will then sell my information to its advertising clients - without any input from me.
If I start getting spammed on FB by advertisers for products I don't want - then I am going to limit the information that I want given out, or drop FB all together. As a result, advertisers are going to drop FB [ala GM] since they see no upside to it. No advertising - no bucks ...
I was amused and intrigued enough by your comment to the the story to find this :
” Give it time it will hit $100. Its just falling due to jitters but later on, watch out! “
I think ya got it backwards - it’s supposed to be “Pump”, *THEN* “Dump”...
That's exactly what most adults will do (have done.)
But No one has mentioned the other elephant in the room. The facilitation of the exploding criminal industry of identity theft; hacking of facebook accounts and the nightmares than ensue. The main beneficiaries of facebook are internet criminals of all kinds.
I don’t think he cares about his face, just his bank account and that is pretty much under control unless he had a hold period as well.
Hold period for all and all shares? Short term gain and taxes vs. no gain?
I’ve had shares in a hold and fail company before. Some get rich, many / most don’t.
Most real success comes from work and not windfall.
“And people were surprised that the FaceBook Insiders were in a hurry to dump as many shares as they could, as fast as they could.
The average employee was worth $3 Million in shares - what would you do, Cash in your $3 Million or hold on and hope that FaceBook wasnt another MySpace? Id take the $3 Million so quickly your head would spin. Would I still work? Yup - and hope more stock options came my way. But, my financial worries would be few, and far between.”
>>Since I am not that smart, I am not dumb enough to buy individual stocks.<<
IMHO, to know what you do not know is the gateway to wisdom.
>>A social networking site?
>>And just what product does that produce?
Well, let's see.
Home Burglary Calendar Manager...
Oh and let's not forget: "Individual Participation
Are we here...
"The answer is very simple. Long before communists occupy the city, there was extensive network of informers; local Vietnamese citizens who knew absolutely everything about people who are instrumental in public opinion - including Barbers and Taxi Drivers. Everyone who was sympathetic to United States was executed. Same thing was done under the guidance of the Soviet Embassy in Hanoi, and same thing I was doing in New Delhi. To my horror, I discovered that in the files were people who were doomed to execution. There were names of pro-Soviet Journalists, with whom I was personally friendly."--KGB Defector Yuri Bezmenov--Soviet Subversion of the Free Press (Ideological subversion, Destabilization, CRISIS - and the KGB)