Facebook IPO

[Broncojohnny]

So why the sudden drop in value?

There is no drop in value, just a drop in what people will pay for the shares. There is a big difference.

[347Mike]

Did not buy.

[Steve]

So why the sudden drop in value?

[Sean88gt]

That's what I get for watching Fox News again. lol.

Or not paying attention.

[Steve]

You mean $34? Unless the feed on drudge is way behind...

That's what I get for watching Fox News again. lol.

[mikec]

$38 to $4 bucks. That can't be good. lol

You mean $34? Unless the feed on drudge is way behind...

[Steve]

$38 to $4 bucks. That can't be good. lol

[Sean88gt]

This is why most IPOs are shit. If the come out price is at a great value, you as a retail investor will never see a share. If the price they are coming out at sucks ass then you'll be able to buy quite a few shares.

This was just the sheep getting sheered, nothing more. Even if the stock was up 20% the first day, the value isn't there in facebook. You can do a simple analysis on a piece of paper or in your head. The company was valued at over $100 billion according to some people. Let's say it is worth $90 billion for the sake of easy math. It has 900 million users. So that value is telling us that each user is bringing $100 in value to the company. I don't know what you have to be smoking to believe that a user brings $100 to facebook but some people believe it.

Which has always been my point, I don't see the worth in it. If they do the projected $6.1 Billion in revenue for 2012 they should be worth $18-24B max. And even that is based on a group of people that will jump ship for the latest and greatest thing. Zuckerberg was smart to sell 30 million of his shares, hopefully he'll invest in something worthy.

[Broncojohnny]

Like Leeds said, it was an opportunity to cash out by the private investors. Now the retail investors are getting hammered.

This is why most IPOs are shit. If the come out price is at a great value, you as a retail investor will never see a share. If the price they are coming out at sucks ass then you'll be able to buy quite a few shares.

This was just the sheep getting sheered, nothing more. Even if the stock was up 20% the first day, the value isn't there in facebook. You can do a simple analysis on a piece of paper or in your head. The company was valued at over $100 billion according to some people. Let's say it is worth $90 billion for the sake of easy math. It has 900 million users. So that value is telling us that each user is bringing $100 in value to the company. I don't know what you have to be smoking to believe that a user brings $100 to facebook but some people believe it.

[Sean88gt]

Well I guess we know MS has stepped out of it. I saw something over the weekend - MS estimated to have used up around $2 billion (of about $2.4) of the green shoe on Friday.

Like Leeds said, it was an opportunity to cash out by the private investors. Now the retail investors are getting hammered.

Well I guess we know MS has stepped out of it. I saw something over the weekend - MS estimated to have used up around $2 billion (of about $2.4) of the green shoe on Friday.

Just out of curiosity, do you have an opinion on the bottom? This has been interesting to watch for me, for some reason, and I think I'm going to start learning more about the market.

[mikec]

Well I guess we know MS has stepped out of it. I saw something over the weekend - MS estimated to have used up around $2 billion (of about $2.4) of the green shoe on Friday.

So they chose to Stride Rite on out of there...

[slow99]

Well I guess we know MS has stepped out of it. I saw something over the weekend - MS estimated to have used up around $2 billion (of about $2.4) of the green shoe on Friday.

Lookin' a little ugly this morning...

[jason07]

damn, I watched Boiler Room first.

you idiot..everyone knows to watch Wall Street 1 first.