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Facebook IPO
Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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hisah wrote:youcan'tstopusnow wrote:Facebook says it will sell 25% more shares than first planned in its flotation in response to strong demand. The move comes one day after the social networking giant said it would raise the price of the shares by 21% to between $34-$38 a share. It also comes despite doubts about the profitability of the site, which is largely used for social updates. Car giant General Motors added to those doubts by saying on Tuesday it would no longer pay to advertise on the site. However, rival Ford said it would continue its social media strategy. A spokesman said: "You just can't buy your way into Facebook. You need to have a credible presence and be doing innovative things." http://www.bbc.co.uk/news/business-18086426
Goal post shifting... Hisah uko down! How now? The fact that the IPO is already oversubscribed even afterthey raised the price, is surely a good thing for FB!
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Rank: Veteran Joined: 4/16/2010 Posts: 906 Location: Nairobi
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Opens at 10%... (btw NASDAQ was having issues opening it - for whatever reasons...) Failed to launch this one... In a few months (4 -6) time this thing will be below IPO price... I still see this stock as the ultimate market top signal... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Still Nasdaq has a problem with FB... "service unavailable" says the link - http://www.nasdaq.com/symbol/fb
Bloomberg is on - http://www.bloomberg.com/quote/FB:US - now reading 7% $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Bloomberg wrote:Facebook Inc. (FB) gained as much as 18 percent in its trading debut, following a record initial public offering that made the social network more costly than almost every company in the Standard & Poor’s 500 Index. (SPX)
The shares advanced 11 percent to $42.18 at 11:30 a.m. in New York, after earlier surging as high as $45, giving it a market value of $123.4 billion. Facebook sold 421.2 million shares at $38 each to raise $16 billion yesterday. The IPO price valued the company at 107 times trailing 12-month earnings, more than every S&P 500 member except Amazon.com Inc. and Equity Residential. Down we go... Now 5% up... Won't be shocked if it closes flat or below listing price. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: User Joined: 1/24/2012 Posts: 1,675 Location: In Da Hood
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hisah wrote:Bloomberg wrote:Facebook Inc. (FB) gained as much as 18 percent in its trading debut, following a record initial public offering that made the social network more costly than almost every company in the Standard & Poor’s 500 Index. (SPX)
The shares advanced 11 percent to $42.18 at 11:30 a.m. in New York, after earlier surging as high as $45, giving it a market value of $123.4 billion. Facebook sold 421.2 million shares at $38 each to raise $16 billion yesterday. The IPO price valued the company at 107 times trailing 12-month earnings, more than every S&P 500 member except Amazon.com Inc. and Equity Residential. Down we go... Now 5% up... Won't be shocked if it closes flat or below listing price. dont be excited or saddened by the intraday fluctuations the closing numbers are whats important .
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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QW25091985 wrote:hisah wrote:Bloomberg wrote:Facebook Inc. (FB) gained as much as 18 percent in its trading debut, following a record initial public offering that made the social network more costly than almost every company in the Standard & Poor’s 500 Index. (SPX)
The shares advanced 11 percent to $42.18 at 11:30 a.m. in New York, after earlier surging as high as $45, giving it a market value of $123.4 billion. Facebook sold 421.2 million shares at $38 each to raise $16 billion yesterday. The IPO price valued the company at 107 times trailing 12-month earnings, more than every S&P 500 member except Amazon.com Inc. and Equity Residential. Down we go... Now 5% up... Won't be shocked if it closes flat or below listing price. dont be excited or saddened by the intraday fluctuations the closing numbers are whats important . I wish I were excited with FB... If you look at my posts on this thread, I have been on the sell side of it and don't understand its hype. Maybe coz I'm not a FB user makes me biased. Also with Goldman at the front of it, that just rockets up my skeptical meter. GS is known for shitty deals and the latest leak on their naked short selling stunts, stinks to the heavens. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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As it happened in euroland - pre market...  Read it here in German - http://www.mmnews.de/ind...erste-kurse-bei-65-euro $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Facebook's flotation had an immediate impact on the value of these companies, as their share prices fell at the same time as Facebook's fell back from its initial spike. Groupon dropped 5.6%, LinkedIn fell 1.2%, while shares in Zynga were suspended twice after plunging more than 13% in a matter of minutes. http://www.bbc.co.uk/news/business-18115914
Facebook ni baba yao... GOD BLESS YOUR LIFE
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Hisah I must commend your skepticism, you were partly right as it closed flat. But let it not be lost that it spiked at the opening( dont know if traders benefited since there was a glitch) and time will tell if it will go the Google way or not. Im just amazed at how a couple of people have joined the Billionaire's club overnight!
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Rank: User Joined: 1/24/2012 Posts: 1,675 Location: In Da Hood
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Wow ! Thats a very poor start. It just closed .23 cents up after all the hype .
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Rank: Veteran Joined: 2/3/2010 Posts: 1,797 Location: Kenya
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the underwritters jpmorganchase struggled the whole day to keep the thing afloat above $38 otherwise it would have britanked. lets see how much longer it can be propped I may be wrong..but then I could be right
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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the thing was saved by the bell!! LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: User Joined: 1/24/2012 Posts: 1,675 Location: In Da Hood
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kyt wrote:the thing was saved by the bell!! Or the multiple glitches or the frenzied buying from underwriters. This thing was just doomd to fail. How do you invest in a fad !
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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digitek1 wrote:the underwritters jpmorganchase struggled the whole day to keep the thing afloat above $38 otherwise it would have britanked. lets see how much longer it can be propped Morgan stanley being the largest underwriter tried all they could all day to stick save the situation. Such a horrible PPT job this was.
http://mobile.reuters.co...84I01620120519?irpc=932
Anyone remember the mpesa bank IPO hype? Any remember Morgan Stanley as its book builder? Anyone remember how that stock performed in 12 weeks time? Once again, keep off this thing. Looking at the social media stocks performance also says a lot about where FB will find itself - murky waters to say the least.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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NASDAQ tries to explain why this IPO failed to launch. http://mobile.bloomberg....re-delayed-facebook.html$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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FB continues to bleed in euroland. At this rate it will test below IPO price today. Underwriters have a tough call here for their PPT control.
A lot of monkeys will be left bouncing around.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 4/26/2011 Posts: 759
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Nabwire wrote:Drunkard wrote:guru267 wrote:[quote=kyt]this will flop big time,how can this site be more valued than cocacola? Value has nothing to do with it.. Reasons why FB will rise: 1. The market was expecting it to be valued at 100billion and now its being valued at 74billion for the IPO .. 2. Even with a high valuation it is still cheaper than majority of its social media peers 3. There is still hype and speculation about future prospects of the company.. 4. The relatively low share price makes it available to the whole market Similarities between Facebook IPO and Safaricom IPO 1.Even with a high valuation it is still cheaper than majority of most recent IPOs 2.There is still hype and speculation about the future prices. 3. The relatively low share price makes it available to the whole markets From the above similaries one can draw a wider conclusions about the prospect of the company price after the IPOs First like Safaricom there is alot of publicity sorounding the IPO, this publicity is good for a smart investor and bad for dummies, Facebook have no incentive to underprice the IPO infact they have the incentive to Overprice it just like Safaricom. Seconding, there are alot of questions about the real value of advertising through facebook and if anyone follows Wallstreet journal, you've probably read about it, so if you combined the known knowledge that Facebook might not meet it's future revenue targets with the publicity sorounding the IPO, you get a situation where the price will jump up during the first 3-5 days of trading driven by the hypes followed by by a 15-25% drop as the speculators and the smart investor sell their shares. My best advice is sell before 1pm Thurday the first week of trading. Good luck like I said, I will be shorting facebook stock the whole week while going long on call options to cover myself, as I wait for end of the week to deliver Facebook stock at 15% below, I will also be going long on 60 day JP Morgan futures index expecting JP to take a large portion of loses from their derivative Hedging in the second quarter. Otherwise I will be smoking pot this weekend and making rounds in tit bars... God Bless Facebook.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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@Rollout - what is your short target? $20. Me thinks this thing should go sub $10. I don't see its value at all... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 10/14/2011 Posts: 661
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Is it worth it?
The $100 billion question on everyone's minds is whether Facebook can live up to its lofty valuation and triple-digit P/E. Even though Facebook has generated less than $1 billion in net income over the past four quarters, it has a massive user base that shouldn't be taken lightly. All Facebook needs to do is figure out how to better monetize all those Facebookers who are hooked on "liking" and commenting on the site. http://www.fool.com/inve...?source=ihpsitth0000001
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