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Facebook Is Tanking Again
TBI ^ | 5-22-2012 | Joe Weisenthal

Posted on 05/22/2012 5:48:59 AM PDT by blam

Facebook Is Tanking Again

Joe Weisenthal
May 22, 2012

Down over 3% pre-market!

Yahoo Finance

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: economy; facebook; markets; stocks
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1 posted on 05/22/2012 5:49:11 AM PDT by blam
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To: blam

Oh, the humanity!


2 posted on 05/22/2012 5:51:25 AM PDT by 1rudeboy
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To: blam

The bubble is popping fast.


3 posted on 05/22/2012 5:52:56 AM PDT by Timber Rattler (Just say NO! to RINOS and the GOP-E)
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To: blam

BOMBSHELL: Facebook Bankers Secretly Cut Forecasts For Company In Middle Of IPO Roadshow

Read more: http://www.businessinsider.com/facebook-bankers-earnings-forecasts-2012-5#ixzz1vbQcgYJ2


4 posted on 05/22/2012 5:54:32 AM PDT by tired&retired
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To: blam

Valued at the same multiple as Apple or Google and it’s under $10.


5 posted on 05/22/2012 5:55:25 AM PDT by Poison Pill (Obama is the hopium of the masses)
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To: blam
I am amazed, after GM's announcement that they were dropping their ads from Facebook, because they were ineffective, that people still bought in. Facebook HAS NO PROFIT MODEL and is destined to fail as a commercial enterprise.

Had I the money and had the rules allowed it, I would have sold them short big-time. Never made sense to me once I heard what GM had to say.
6 posted on 05/22/2012 5:56:45 AM PDT by Sudetenland (Anybody but Obama!!!!)
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To: Sudetenland

A 20 multiple....people are truly sheep.


7 posted on 05/22/2012 5:59:01 AM PDT by traderrob6
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To: Sudetenland

Not to worry. Once Zuckerberg writes a few checks to the Obama campaign, facebook will be declared, “too big to fail.”


8 posted on 05/22/2012 5:59:19 AM PDT by Joe 6-pack (Que me amat, amet et canem meum)
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To: Timber Rattler

I guess the suckers who screwed up and paid $45/share aren’t too happy right now. They took a bath and made Zuckermann rich (along with other insiders). All for a ‘product’ that FB didn’t even create (they created the canvas, but the real interest is the self-interest of all the members). Advertising? I can’t even tell you what the last pop-up advertisement is on ANY web page I’ve seen.


9 posted on 05/22/2012 6:00:29 AM PDT by Gaffer
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To: Timber Rattler
This is my comment before the market opened yesterday: (#4)

My prediction:

Facebook stock is gonna crash.

All the hype...seems like a house of mirrors to me.

The guys with the gold and silver are already sitting in their chairs. (ahem)

10 posted on 05/22/2012 6:02:52 AM PDT by blam
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To: Gaffer
I guess the suckers who screwed up and paid $45/share aren’t too happy right now.

"Zucker's suckers."

11 posted on 05/22/2012 6:03:40 AM PDT by JaguarXKE (If my Fluffy had a puppy, it would look like the puppy Obama ate!)
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To: Gaffer

And the real irony is that zuckerbergs new format, Timeline, is driving down usage in titanic proportions. But he has too much ego to admit a miistake and back off timeline


12 posted on 05/22/2012 6:04:33 AM PDT by Josa
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To: blam

General George Pickett and Mark Zuckenberg have much in common. Pickett’s charge market the high point of the Confederacy. Afterwards it was all decline. Similarily Zuckenberg’s IPO marked the high point of social medias economic potential. Face it. There is simply a limit to the effective marketing that can be done on these social media sites.Yet with 30 to 40 young people visiting these sites regularly, clever people should be able to make an economic success of Face Book at some level. However those who bought at the opening have clearly lost.


13 posted on 05/22/2012 6:04:33 AM PDT by allendale
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To: Gaffer

And the real irony is that zuckerbergs new format, Timeline, is driving down usage in titanic proportions. But he has too much ego to admit a miistake and back off timeline


14 posted on 05/22/2012 6:04:57 AM PDT by Josa
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To: blam
FB's P/E ratio was over 78 at the end of business yesterday. Ludicrous. The company has produced earnings and does have some growth potential. But let the market clear out the amateurs and momentum-chasers first.

I'd consider getting in, maybe at around $10-$15. Even then, I'd like to see a better explanation of their revenue stream model for the future than what I've seen so far. I think their estimates of growth in brand advertising revenue is exaggerated, and other streams such as FB's virtual "currency" for on-line gamers is highly speculative.

15 posted on 05/22/2012 6:08:57 AM PDT by andy58-in-nh (America does not need to be organized: it needs to be liberated.)
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To: blam

When all the adults started going to Facebook, it was no longer “the place.”


16 posted on 05/22/2012 6:09:04 AM PDT by LS ("Castles Made of Sand, Fall in the Sea . . . Eventually (Hendrix))
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To: blam

It is indeed looking like another bad day for FB. Premarket bid x ask prices are just under $33.00 and with seemingly many more looking to sell than looking to buy.


17 posted on 05/22/2012 6:09:39 AM PDT by ZX12R (FUBO GTFO 2012 !)
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To: blam

It’s all about the money....everyone involved got scammed.


18 posted on 05/22/2012 6:10:01 AM PDT by mongo141 (Revolution ver 2.0, just a matter of when, not a matter of if!)
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To: tired&retired
Outraged Facebook Speculators Are Now Blaming Everyone But Themselves...
19 posted on 05/22/2012 6:11:33 AM PDT by blam
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To: blam

It is a house of mirrors right now, but there is tons of money to be made with the right management and good ideas. More people tune into Facebook 365 days per year than the Super Bowl and it isn’t even close. There isn’t a forum quite like it, someone just needs to figure out how to use it to generate cash. If the stock does in fact crash, I might put $1,000 in it.


20 posted on 05/22/2012 6:17:00 AM PDT by wolfman23601
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To: Gaffer

I have never seen a single ad using facebook. I don’t see how they make money.


21 posted on 05/22/2012 6:23:27 AM PDT by TexasFreeper2009 (Obama lied .. and the economy died.)
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To: traderrob6
A 20 multiple

What does that mean?
22 posted on 05/22/2012 6:24:04 AM PDT by andyk (Go Juan Pablo!)
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To: blam

-—http://www.businessinsider.com/outraged-facebook-speculators-are-now-blaming-everyone-but-themselves-2012-5——

Hurting the brand, and diminishing the value of their shares.

But at least they won’t learn anything.


23 posted on 05/22/2012 6:25:10 AM PDT by St_Thomas_Aquinas (hViva Christo Rey!)
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To: ZX12R

I just went to facebook to look for these supposed ads... after a few minutes of looking... I think they are those things off to the right in that little collumn? lol

Seriously I have never ONCE looked at that.

This is the next bubble mark my words.


24 posted on 05/22/2012 6:25:41 AM PDT by TexasFreeper2009 (Obama lied .. and the economy died.)
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To: TexasFreeper2009

I just checked my business facebook page... and it doesn’t even have those ads!

lol

Anyone that pays a dime for facebook stock is an idiot.


25 posted on 05/22/2012 6:27:19 AM PDT by TexasFreeper2009 (Obama lied .. and the economy died.)
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To: LS

You are exactly right. My wife loves FB as it allows her to stay in the loop with friends but they are pissing her off with the constant changes. My youngest son, 13, goes on almost daily to play games but my 15 year old daughter gets on about once a month, and my 18 year old son is on for 5 minutes a day max.

I see no long term large customer base here.


26 posted on 05/22/2012 6:28:50 AM PDT by mikesmad
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To: allendale

Similarily Zuckenberg’s IPO marked the high point of social medias economic potential

<><><><

I try not to confuse the concept of social media with the products it has spawned, myspace and facebook two of the most notable products social media has spawned.

I don’t think social media will ever go away. I have no idea what it will look like next year or in the next decade, but I do believe it is a genie that cannot go back in the bottle.

JMO.


27 posted on 05/22/2012 6:29:06 AM PDT by dmz
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To: Josa
And the real irony is that zuckerbergs new format, Timeline, is driving down usage in titanic proportions. But he has too much ego to admit a miistake and back off timeline

As someone who manages FB pages with well over 1 million fans, I can tell you for a fact: Timeline has DESTROYED Facebook. It is a gun to their head. It makes utterly no sense at all.

28 posted on 05/22/2012 6:33:30 AM PDT by montag813
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To: blam

The success of a company is offering a group of produces and services. This is a one hit company. If they are bought out by a larger entertainment company the stock has a chance of going up.


29 posted on 05/22/2012 6:37:15 AM PDT by bmwcyle (I am ready to serve Jesus on Earth because the GOP failed again)
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To: Gaffer

“Zucker-punched” — from zerohedge.com


30 posted on 05/22/2012 6:40:39 AM PDT by jiggyboy (Ten percent of poll respondents are either lying or insane)
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To: blam

Underwriters manipulating stock. They should get Vince the ‘Shamwow guy’ to prop up their worthless stock.


31 posted on 05/22/2012 6:42:45 AM PDT by Harley (Will Rogers never met Harry Reid.)
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To: TexasFreeper2009

Hype, media attention, and a way too gullible populace that believes anything they read/see/hear from our illustrious media....ethereal things like this are the 21st Century Ponzi Schemes.


32 posted on 05/22/2012 6:43:00 AM PDT by Gaffer
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To: TexasFreeper2009

You can probably attribute its wide-spread popularity and hope for value into two areas: user loyalty and use along with what I’d surmise were multiple ‘paid’ media articles and broker ‘talk-up’.....stupidity and payola if you ask me.


33 posted on 05/22/2012 6:47:13 AM PDT by Gaffer
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To: montag813

Timeline sicks. I can’t stand it, and no on else I know on FB can stand it either.

The format they had prior to that was great - I don’t know why they felt they had to go screw with a good thing.


34 posted on 05/22/2012 6:47:22 AM PDT by reagan_fanatic (Worst. President. Ever.)
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To: reagan_fanatic

Agreed. Used FB occasionally before the timeline feature was added. Now I hardly go to it at all.


35 posted on 05/22/2012 6:52:46 AM PDT by okkev68
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To: Sudetenland

You can buy PUT options on it.


36 posted on 05/22/2012 6:57:07 AM PDT by woodbutcher1963
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To: Sudetenland

You can buy PUT options on it.


37 posted on 05/22/2012 6:57:20 AM PDT by woodbutcher1963
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To: reagan_fanatic

I’m not on timeline as of yet...but am having problems posting...I think they are targeting me because I haven’t upgraded to timeline.


38 posted on 05/22/2012 6:59:07 AM PDT by MadelineZapeezda (If You Dont Look Like Obamas Son, No One Cares)
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To: blam

Now down 7.5%.


39 posted on 05/22/2012 7:05:12 AM PDT by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
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To: LS

I signed up just to see what my kids were up to. They lived several hours away and would post to facebook after weekends. They didn’t understand or care this info was public - they do now. Now their posts are private or they have dropped FB.


40 posted on 05/22/2012 7:08:30 AM PDT by mcshot (God bless the USA! OMG PLEASE vote ABO or OWW and our Country dies.)
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To: woodbutcher1963

My understanding is that you cannot buy put options for the first 2 weeks of an IPO. This is to prevent someone from artificially driving the value down and then sweeping in to buy everything at discount.


41 posted on 05/22/2012 7:08:51 AM PDT by Sudetenland (Anybody but Obama!!!!)
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To: montag813

I use FB to keep in touch with friends and family across the country, and I went to one of my friend’s profiles to get her info to send a real birthday card. She had switched to timeline (I haven’t yet) and I couldn’t find any information at all. It looked like a complete mess and made no sense at all.


42 posted on 05/22/2012 7:30:30 AM PDT by Betis70 (Bruins!)
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To: Sudetenland

“Facebook HAS NO PROFIT MODEL and is destined to fail as a commercial enterprise.”

Ha, their profit model is selling their customers private information and pushing ads at them for a reward.


43 posted on 05/22/2012 7:31:32 AM PDT by desertfreedom765
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To: Sudetenland

Does anyone look at ads on any site? I certainly don’t.


44 posted on 05/22/2012 7:38:29 AM PDT by bgill
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To: andy58-in-nh

That’s a pretty good take. What is the typical P/E for this type of business?


45 posted on 05/22/2012 7:50:12 AM PDT by Boiler Plate ("Why be difficult, when with just a little more work, you can be impossible" Mom)
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To: blam

I keep reading that the opening price was too high and the technical glitches with the NASDAQ system were/are driving the price down.

This is just dumb. The market decides the price. Anyone numb enough to pay too much just didn’t read the prospectus and estimate the value of the stock. You don’t buy stock at the asking price just because that’s what’s asked! You buy when you estimate that the value is greater than the price.

DUH!

Given the history of most internet stocks and the recent history of Facebook, Inc., I wouldn’t pay much for their stock. There may be an opportunity for long-term profits, but I haven’t seen it yet. Almost every Internet craze has passed. Social media is hot right now, but it will become stale soon enough.


46 posted on 05/22/2012 7:54:54 AM PDT by Poser (Cogito ergo Spam - I think, therefore I ham)
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To: Boiler Plate
It's difficult to make direct comparisons, since no other true "social networking" sites are publicly-traded. But if you look at internet information providers like Yahoo (forward P/E= 14); Google (P/E = 12), Zynga (19), or Groupon (18), you can see the neighborhood more clearly.

With a last quarter earning per share of .43, FB priced at $10.00 would still have a P/E of about 23; a much more realistic number in the absence of stable growth prospects and management experience, among other things.

47 posted on 05/22/2012 8:19:50 AM PDT by andy58-in-nh (America does not need to be organized: it needs to be liberated.)
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To: blam

Eduardo may need to become a naturalized US citizen so he can get a job and start over.


48 posted on 05/22/2012 10:04:36 AM PDT by RobinOfKingston (The instinct toward liberalism is located in the part of the brain called the rectal lobe.)
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Thanks blam. I need customer service, and FB is part of the much-ballyhooed service economy we supposedly enjoy, but for a good laugh, call the FB number and press 1 for customer service. I don't think it's possible to post a spoiler about what will happen next, but I'll let everyone find out for themselves, just in case.

650-543-4800


49 posted on 05/22/2012 11:31:49 AM PDT by SunkenCiv (FReepathon 2Q time -- https://secure.freerepublic.com/donate/)
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To: SunkenCiv
I've not once clicked on Facebook.

I can still remember when everyone thought I was strange because I didn't have a CB radio. (You were peobably to young to remember)

50 posted on 05/22/2012 1:37:00 PM PDT by blam
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