Is face book worth 104 billion

[Boudicca Littlebird]

Do you really think the company is worth that.

 

Some say the Goldmans, the masters of the short have hyped the price and unloaded all their shares in it, and that the price will  fall next weeks,

 

Many pension funds will have bought into it, if the price falls then that are forced by law to sell the shares, some say that this is how the banks have striped pension funds, by manipulating the price so that they can get pension funds to buy at the top and then force them to sell at the bottom.

 

Is facebook being used as another tool to strip pension funds?

 

Do you agree with this analogy?

[Conifer Dada]

I find it difficult to see what makes a free social networking site worth $104 billion other than the potential profits to be made if it ceases to be free.  

My prediction is the share price will rise for a short time after the floatation and then start dropping.

[Dilbert Dilweg]

Lots of advertisers want to put their stuff there. I dont know why because I ignore the ads.

Traffic=Business

It probably is another one of those speculative lies from wallstreet to boost share sales.....

 

What product does FB sell to the public to enherit all this cash?

 

But Zukerman has to be stoked. making all this cash off offf the internet lol

[Conifer Dada]

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Dilbert Dilweg wrote:

Lots of advertisers want to put their stuff there. I dont know why because I ignore the ads.

Traffic=Business

It probably is another one of those speculative lies from wallstreet to boost share sales.....

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I ignore internet ads too, and I don't think I've ever been influenced to buy anything by one - not even remotely.  Maybe one day it will become apparent that most internet advertising is a waste of time, particularly when it's getting easier to do searches for products and services oneself on the net.

[WolfBaginski Bearsfoot]

No, it isn't worth that.

The price is a sign of a Bubble, again. I don't know what the rules are in the USA, so I can't comment on what you say about Goldman Sachs, but they apparently lied their pretty little heads off, and pocketed a huge fee, to get Greece into the Euro-zone.

Part of the problem is that Facebook depends on advertising to make money, and there is a world-wide recession. Facebook investors are betting on things getting better, and soon, because advertising revenue depends on people buying stuff, and in a recession people buy less.

 

[Boudicca Littlebird]

Plus as I put in last weeks thread.

http://community.secondlife.com/t5/General-Discussion-Forum/Is-the-PC-becoming-extinct-and-taking-SL-with-it/td-p/1530531

People are moving to mobiles faster than they thought, I just feel that they could be just getting as much money out of it as they can, then will dump it, affectively striping pension funds.

There are to many things wrong with this IPO, like the owner having 100% control after the sale, seems to me this is aimed at pension funds to buy, so being a tool to strip them.

[Brenda Connolly]

Facebook isn't worth $1.04 if you ask me.

[Conifer Dada]

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Brenda Connolly wrote:

Facebook isn't worth $1.04 if you ask me.

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LOL - I think it's worth a bit more than that!

[PeachJubilee]

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WolfBaginski Bearsfoot wrote:

No, it isn't worth that.

The price is a sign of a Bubble, again. I don't know what the rules are in the USA, so I can't comment on what you say about Goldman Sachs, but they apparently lied their pretty little heads off, and pocketed a huge fee, to get Greece into the Euro-zone.

 

 

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I'm not sure that's entirely accurate, although I concede that "prettiness" is perhaps somewhat subjective. 

[Boudicca Littlebird]

LOL, that needs a kudos.

[Alazarin Mondrian]

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Boudicca Littlebird wrote:

1] Is face book worth 104 billion?

2] Is facebook being used as another tool to strip pension funds?

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1] No. It's just tulipmania all over again.

2] Possibly. Time will tell.

[Storm Clarence]

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Boudicca Littlebird wrote:

 

Many pension funds will have bought into it, if the price falls then that are forced by law to sell the shares, some say that this is how the banks have striped pension funds, by manipulating the price so that they can get pension funds to buy at the top and then force them to sell at the bottom. 

Is facebook being used as another tool to strip pension funds?

 

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First, and foremost, pension funds should NOT be speculating especially with IPO's with their inherent volatility.  Pension funds should seek safe investments PERIOD.

Second, it is the pension fund MANAGER that should be fired for speculating with MY money.      

[Ansariel Hiller]

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Brenda Connolly wrote:

Facebook isn't worth $1.04 if you ask me.

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That's still way to much money for that piece of privacy ignoring, personal data selling-out crap!

[Maryanne Solo]

Facebook has ads?

[Ceka Cianci]

they do it with gold and oil and everything on the market..futures..the market is one big game that changes daily..

i don't believe even if it was that there would be a true 104 billion invested in it..

just the way they keep saying what it is worth all the time  to the media  tells me it's being gamed..

[PeterCanessa Oh]

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Boudicca Littlebird wrote:

Many pension funds will have bought into it, if the price falls then that are forced by law to sell the shares, some say that this is how the banks have striped pension funds

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You are completely wrong about that.  The law in the UK does not force pension funds to sell shares based on their price.

[sorry about this one, I can't resist: if the banks have striped pension funds who has polka-dot ones?]

[Amethyst Jetaime]

Facebook is not worth that valuation. 

• Everything I've read says that most experts agree that they have yet to really prove that they can make that kind of money to justify the valuation
• Ads are the biggest source of revenue for them and most people ignore internet ads.  General Motors is withdrawaling as an advertiser there this summer because they feel the money they have spent has not given them any return.  Wouldn't be surprised if others don't follow suit.
• Privacy is a growing concern too as  people realize they are being turned down for jobs, insurance or find themselves in legal trouble because of what they put out there on Facebook that remains forever.   As more people are effected they will dial back their use of it
• As soon as the "next" big thing comes along, it will be dead in the water

A risky investment in my opinion.  Sure, people will make some money in the short term but eventually the bubble will burst just as it has for many 'hot' internet sites.

[Ceka Cianci]

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Amethyst Jetaime wrote:

Facebook is not worth that valuation. 

• Everything I've read says that most experts agree that they have yet to really prove that they can make that kind of money to justify the valuation
• Ads are the biggest source of revenue for them and most people ignore internet ads.  General Motors is withdrawaling as an advertiser there this summer because they feel the money they have spent has not given them any return.  Wouldn't be surprised if others don't follow suit.
• Privacy is a growing concern too as  people realize they are being turned down for jobs, insurance or find themselves in legal trouble because of what they put out there on Facebook that remains forever.   As more people are effected they will dial back their use of it
• As soon as the "next" big thing comes along, it will be dead in the water

A risky investment in my opinion.  Sure, people will make some money in the short term but eventually the bubble will burst just as it has for many 'hot' internet sites.

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agree's..it all kind of reminds me of microsoft being so big..even though they slowed down in a different way..they all hit a wall sooner or later when people wise up..

[George Orellana]

Disappointing debut for FB, proves that it was overvalued.

[161488303349]

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George Orellana wrote:

Disappointing debut for FB, proves that it was overvalued.

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The closing price shows that the company got the valuation right. Was a uptick to $42 as investors filled out their portfolios and it ended the day 23c up. Thats pretty much perfect

The initial offer price is more about gauging investor interest than anything else. When a  stock falls or rises way too much either way after opening then it means you got your numbers wrong and you dont understand your market. If was me in charge of the IPO I would be pretty happy with what happen

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Where the price goes from here will now depend on the usual boring stuff like how much money the company is actual making

[Anaiya Arnold]

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Ceka Cianci wrote:

they do it with gold and oil and everything on the market..futures..the market is one big game that changes daily..

i don't believe even if it was that there would be a true 104 billion invested in it..

just the way they keep saying what it is worth all the time  to the media  tells me it's being gamed..

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They are not supposed to be allowed to speculate on oil in the US, but someone wrote some "exemption" letters. 

[161488303349]

agree

if your pension fund is using a passive indice tracking portfolio allocation method then its performance can suffer sometimes as the general market mood fluctuates.  the decision to use that method tho is mandated by the pension funds constitution. not by the law. a constitution changeable by the pension fund/members

[George Orellana]

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16 wrote:

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George Orellana wrote:

Disappointing debut for FB, proves that it was overvalued.

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The closing price shows that the company got the valuation right. Was a uptick to $42 as investors filled out their portfolios and it ended the day 23c up. Thats pretty much perfect

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Not necessarily. When FB's 3 biggest underwriters are J.P. Morgan, Goldman Sachs and Morgan Stanley you can pretty much bet that the three purchased stock all day long to keep the price from falling under $38 a share.

[161488303349]

was about 575 million trades

$38 x 575 million = $21.8 billion

the underwriters would be in major trouble if they were the only ones who thought it was worth $38 or more

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am not saying that they werent supporting the stock. all underwriters do this. is standard practice. but they will only do this up to a point. i dont think their point is $21.8 billion tho. more like 50 or 100 million maybe on an IPO of this size

 

[Boudicca Littlebird]

http://www.telegraph.co.uk/technology/facebook/9276455/Facebook-IPO-bank-support-spares-blushes-as-shares-end-first-day-flat.html