Facebook Is Tanking Again

TBI ^ | 5-22-2012 | Joe Weisenthal

[blam]

Facebook Is Tanking Again

Joe Weisenthal
May 22, 2012

Down over 3% pre-market!

Yahoo Finance

[Sudetenland]

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.

[Betis70]

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.

[desertfreedom765]

“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.

[bgill]

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

[Boiler Plate]

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

[Poser]

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.

[andy58-in-nh]

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.

[RobinOfKingston]

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

[SunkenCiv]

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

[blam]

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)

[traderrob6]

The stock being offered out (number and value of shares) is worth 20 times the net worth of the company iteself.

[Labyrinthos]

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

Makes me wonder what FB really does with all the personal information that it harvests from all those narcissist, shallow, immature, wannabe suckers who feel compelled to share every aspect of their boring lives with total strangers.

[Future Snake Eater]

I talk to friends and family on FB, but OK.

[Labyrinthos]

I talk to friends and family on FB, but OK.

You can also do that by telephone, text message, email, and Skype without creating a Facebook page that screams "look at me, I'm an attention whore."

[Future Snake Eater]

lol...whatever you say, dude.

[TheOldLady]

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