Is it worth buying shares in facebook?

Facebook did the best thing for Facebook which was raise as much money as possible. If they'd IPO'd and then the share value had shot up they would have made less money than potentially possible, the company only gets to sell those shares once.
 
Merlin5 said:
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.
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because he knows itas almost impossible to get any decent revenue from facebook long term
 
arknor said:
because he knows itas almost impossible to get any decent revenue from facebook long term
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If that's the case, why didn't he cash more out? It is much harder to dilute his voting power than it is other option holders.

To add to that, he had to make a relatively substantial sale to pay his tax bill.

And lastly, now the price of his assets are set by the whims of a weird and irrational market full of people, would you expect him or anyone to keep all their eggs in one basket?

(If the answer is yes, you're an idiot).
 
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Merlin5 said:
lol?
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http://en.wikipedia.org/wiki/Mark_Zuckerberg#Early_years

During Zuckerberg's high school years, under the company name Intelligent Media Group, he built a music player called the Synapse Media Player that used artificial intelligence to learn the user's listening habits, which was posted to Slashdot[23] and received a rating of 3 out of 5 from PC Magazine.[24] Microsoft and AOL tried to purchase Synapse and recruit Zuckerberg, but he chose instead to enroll at Harvard University in September 2002.

[..and went on to open source it]
 
If you believe the premise of The Social Network, and after a little bit of further reading i generally buy most of the traits displayed by Zuck in the movie, then it does seem like the last thing he was interested in was wealth. I wish he was more like that character in real life though. He seems a bit of a...dweeb.
 
Basher said:
If he only cared about the money, why didn't he sell it to MS years ago to make himself a billionaire.

It's not about the money.
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BS, anyone that says that are the ones more interested in it than the ones who speak it out loud and are upfront that it is about the money.

Cannot stand it when people say, its not about the money. IT IS. Everything is about the money.

He didn't want to become a billionare years ago because and I quote "A billion dollars isn't cool, you know whats cool? A trillion dollars*". *slightly edited

Yeh... It wasn't about the money... was it? BS BS BS.

:D
 
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.
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Pretty much spot on.

FB IPO price was increased while at the same time the MS analyst figures were revised downwards. The latter was alledgedly disclosed only to a few institutional investors.

Bearing in mind that the IPO price is reflective of what the analysts think the share is worth, any change in the fundamentals of that analysis should be reflected to the IPO price offering. In this case this did not happen.

If this proves to be true then those who are suing will have a pretty good case as it means a lot of the stuff in the IPO prospectus can come under scrutiny etc.

MS has made a dogs dinner out of this. Unfortunately this will have much greater implications. On MS as an underwriter and their credibility, on Internet companies and the investor's trust in them and their number. On valuations in general etc. There will be a lot of collateral damage for the Internet stocks to IPO in the immediate future as everyone will be uneasy about high valuations in the short/mid-term.
 
'Morgan Stanley to reimburse investors ripped off by Facebook trades... as embattled social network may switch to New York Stock Exchange over bungled IPO

Amid a flurry of lawsuits over Facebook's initial public offering, the company’s top underwriter says it's prepared to pay back investors who were burned when they bought shares.
Morgan Stanley announced in a memo on Wednesday that it is reviewing Facebook trades and would adjust prices for some retail customers who overpaid.'
 
Gangster said:
BS, anyone that says that are the ones more interested in it than the ones who speak it out loud and are upfront that it is about the money.

Cannot stand it when people say, its not about the money. IT IS. Everything is about the money.

He didn't want to become a billionare years ago because and I quote "A billion dollars isn't cool, you know whats cool? A trillion dollars*". *slightly edited

Yeh... It wasn't about the money... was it? BS BS BS.

:D
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It's not always about the money. Ironically, the ones who often earn the most are those who don't do it for the cash.
 
which is only about £10 per user per year, this is something shareholders won't like and their overall greed will ruin facebook and then it will go down the pan.
 
desires said:
which is only about £10 per user per year, this is something shareholders won't like and their overall greed will ruin facebook and then it will go down the pan.
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I don't know what is wrong with your maths, but it is actually around $1 per user.

So with 40-60 million individuals served a day, and about $6 billion in profit a year, how does that work for McDonalds? Are they being driven into the ground?

Please, share with us more of your investment insight, wise sage.
 
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