Is it worth buying shares in facebook?

Gangster · 23 May 2012 at 10:55

Burnsy2023 said:
I think it'll go down a bit more than that. My crystal ball says probably around $25.

My crystal ball hopes to see 19$, half of what it was "apparently worth".

.

wildman · 23 May 2012 at 10:59

A U.S. stock market watchdog has launched a probe into the Facebook flotation after allegations emerged that some investors were not shown given information that showed the company was overvalued.
Shares in Facebook fell on both days of trading on Nasdaq this week, throwing the most hotly anticipated stock market launch in years into turmoil.
They closed 9 per cent lower yesterday as investors sold the stock, to take the price to $31.00 - $7 or more than 18 per cent down on the float price of $38.00. The Facebook IPO was also plagued by technical difficulties on Friday which delayed the share launch on the Nasdaq exchange.
The Financial Industry Regulatory Authority said it will investigate whether Morgan Stanley withheld negative analyst comment from clients before Friday's initial public offering.

Read more: http://www.thisismoney.co.uk/money/...investors-misled-valuation.html#ixzz1vgYcgEC4

To be honest it doesn't take a PhD in rocket science to work out that garbage was massively over priced. I'd take a punt on them being sub 20 by christmas unless there is a massive resurgence in general market confidence that sees a general rise in most listed stocks for tech / bluechips / pharma / finance that helps to push the market trends up.

fez · 23 May 2012 at 11:11

Greebo said:
Really? I thought most people, myself included, said it would crash within days?

I was actually surprised it didn't on the first day but it was been propped up.

There were plenty of people saying it was massively overvalued but Hatter_the_mad and a few others were adamant that it was worth every penny. I have seen absolutely no reason at all why facebook would be worth anywhere near $100 billion and lots of reasons why it isn't worth half that.

Hatter The Mad · 23 May 2012 at 11:14

fez said:
There were plenty of people saying it was massively overvalued but Hatter_the_mad and a few others were adamant that it was worth every penny. I have seen absolutely no reason at all why facebook would be worth anywhere near $100 billion and lots of reasons why it isn't worth half that.

I still think it is, long term. I wouldn't have bought on IPO day, but I will probably be buying based Q2 figures after things have settled.

Greebo said:
Really? I thought most people, myself included, said it would crash within days?

I was actually surprised it didn't on the first day but it was been propped up.

You should have done what I did, then, and bet on the wave-riders sinking.

toshj · 23 May 2012 at 15:32

And now Mr. Zuckerberg is being sued

Will be interesting to see how this plays out over the next few weeks. Morgan Stanley are takign an absolute bashing amid reports that one of their analysts recommend lowering the initial stock price just before they went ahead with the IPO!

fez · 23 May 2012 at 15:48

I think this will sink down to mid to low twenties and over the next 5 years or so it will die a slow death.

Hatter The Mad · 23 May 2012 at 16:02

fez said:
I think this will sink down to mid to low twenties and over the next 5 years or so it will die a slow death.

Very few others do - so best time to put your money where your mouth is!

Gangster · 23 May 2012 at 16:05

Hatter The Mad said:
Very few others do - so best time to put your money where your mouth is!

Hatter, your posts in this thread come across as if you bought shares in facebook @ 42$ and they've been decreasing ever since.

U Mad?

(and yes, i've read your other posts...)

Edit: I just realised the non-intentional pun.

.

Hatter The Mad · 23 May 2012 at 16:09

Gangster said:
Hatter, your posts in this thread come across as if you bought shares in facebook @ 42$ and they've been decreasing ever since.

U Mad?

I would be if I bought at $40, certainly.

Hatter The Mad said:
I don't know, I didn't short Facebook. I bet on Snap Interactive, Zynga, LinkedIn and Google.

Hatter The Mad said:
I know, that's what I bet on happening.

I figured it'd be hard to lose: they're either going to sink because money will be moved from those to Facebook if Facebook popped on the day, and/or they would sink if Facebook doesn't pop and people think "****! These must be overvalued, then."

Although for the Google one, that was riskier (I bet on that tanking if Facebook popped, and obviously it didn't really pay off).

4T5 · 23 May 2012 at 16:14

Zookerface must be gutted to only have 17 billion left.

Cosimo · 23 May 2012 at 16:20

4T5 said:
Zookerface must be gutted to only have 17 billion left.

He'll be down to 10 before the price settles down.

semi-pro waster · 23 May 2012 at 16:21

toshj said:
And now Mr. Zuckerberg is being sued

Will be interesting to see how this plays out over the next few weeks. Morgan Stanley are takign an absolute bashing amid reports that one of their analysts recommend lowering the initial stock price just before they went ahead with the IPO!

The lawsuit is interesting although to a certain extent I've got limited sympathy if people decide to play the stock market and get burned. It really is something that you've got to do your own research on and either way you accept a certain amount of risk.

Now if it can be proven that some or all the named parties in the lawsuit were hiding weakened growth forecasts for Facebook then of course they deserve to be punished as the law allows.

toshj · 23 May 2012 at 16:40

semi-pro waster said:
The lawsuit is interesting although to a certain extent I've got limited sympathy if people decide to play the stock market and get burned. It really is something that you've got to do your own research on and either way you accept a certain amount of risk.

Now if it can be proven that some or all the named parties in the lawsuit were hiding weakened growth forecasts for Facebook then of course they deserve to be punished as the law allows.

Yeah, it's a strange one. There seemed to be a lot of people who had their doubts about this, and the initial stock offering price was quoted as being pretty high, but I don't think many predicted it to be quite as outlandish as all this!? Weakened forecasts being hiden, lawsuits, a huge decline is stock price after just a couple of days... not great timing for the US banks and US IPO market given what's happening in Europe!

dalin80 · 23 May 2012 at 16:41

4T5 said:
Zookerface must be gutted to only have 17 billion left.

He could in theory lose a hell of a lot of that in a worse case scenario.

Also keep in mind he lost billions in a couple of days, that's gotta hurt.

fez · 23 May 2012 at 16:47

semi-pro waster said:
The lawsuit is interesting although to a certain extent I've got limited sympathy if people decide to play the stock market and get burned. It really is something that you've got to do your own research on and either way you accept a certain amount of risk.

Now if it can be proven that some or all the named parties in the lawsuit were hiding weakened growth forecasts for Facebook then of course they deserve to be punished as the law allows.

What is the issue here. As far as I have heard, it's related to some of the investors not being shown revised profit figures that took into account the large number of mobile users on facebook.

Has the figure gone up from 40-50% in the last few weeks? I assume that the initial valuation would have shown what figures it was based off. If I was looking to invest in facebook I would certainly do some research. If something I had read from a reputable source contradicted the figures from facebook I would query them.

fez · 23 May 2012 at 16:48

dalin80 said:
He could in theory lose a hell of a lot of that in a worse case scenario.

Also keep in mind he lost billions in a couple of days, that's gotta hurt.

I think he cares very little about money. Couple that with the fact that even $1B is enough for 100 to live their entire lives on and I don't think he would lose any sleep if he was only worth a few hundred million.

ps3ud0 · 23 May 2012 at 16:57

fez said:
What is the issue here. As far as I have heard, it's related to some of the investors not being shown revised profit figures that took into account the large number of mobile users on facebook.

Has the figure gone up from 40-50% in the last few weeks? I assume that the initial valuation would have shown what figures it was based off. If I was looking to invest in facebook I would certainly do some research. If something I had read from a reputable source contradicted the figures from facebook I would query them.

I think the crux is the larger investors were told of the revised growth, while others werent by MS et al.

Am I not right in thinking that the IPO price was actually revised higher very recently too?

ps3ud0 :cool:

toshj · 23 May 2012 at 17:05

It (the stock price) was revised higher just before the IPO, but the future profit levels were weakened and this fact was concealed from invetors... apparently. Not a great was to start life as a publicly traded company!

craarc · 23 May 2012 at 17:09

tbh way over priced even at 25 usd maybe if u want to hold on a few years may get money back

seems bizzare that within the space of a few weeks days even they went from 28 to 38 pre release didnt they

Merlin5 · 23 May 2012 at 18:35

fez said:
I think he cares very little about money.

lol?

"Zuckerberg earns himself $1.13 BILLION by cashing out Facebook stock early Friday... as price could nose dive to $9.59 a share"

http://www.dailymail.co.uk/news/art...g-Facebook-stock-early.html?ito=feeds-newsxml

"The 28-year-old still holds a vast amount of Facebook stock but his decision to sell off so much will leave investors wondering about his confidence in the company."

It's so obvious that he knows that facebook will crash sooner or later, which is why he's being shrewd and cashing in.