So the big IPO of Facebook was yesterday, and trading starts on the NASDAQ today. I'm curious whether people are going to buy or not? At $38/share that puts the company's valuation at $104 Billion, or over 100 times earnings. Will FB be able to sustain such a high valuation? I predict that the price will shoot up today as individuals jump in to buy a few shares just for fun, but in 3 months time the price will be below its initial offering price. What do you predict?

I agree, jump up, up and down over next 8 weeks or so, I say perhaps hold value within 20 percent for maybe 4 or 5 months but down about 40 to 50 percent by 6 months.

I may buy then.

Of course double in value in 6 months and I miss out like I did on Radio Shack back in the day.

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Originally Posted by ebaines

So the big IPO of Facebook was yesterday, ajnd trading starts on the NASDAQ today. I'm curious whether people are going to buy or not? At $38/share that puts the company's valuation at $104 Billion, or over 100 times earnings. Will FB be able to sustain such a high valuation? I predict that the price will shoot up today as indivisduals jump in to buy a few shares just for fun, but in 3 months time the price will be below its initial offering price. What do you predict?

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Highly overrated but fashionable. No company is worth 100 times earnings particularly one with no assets

I can't see a justification for this purchase. Big warning came from GM this week. They pulled their ads from FB because they determined it wasn't an effective way to advertise. FB relies on these ads.

Bottom line.. I come here for social media interaction . I am on FB because family members are there ;otherwise I wouldn't bother .

To those who are thinking about purchasing I have one final warning... remember My Space ?

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Originally Posted by tomder55

To those who are thinking about purchasing I have one final warning ...... remember My Space ?

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Exactly. Remember AOL? That one didn't work out so great for investors (unless you got out at the height of the tech bubble).

It'll be another case of irrational exuberance, people will buy from emotion not from logical valuation. There will likely be an uptick for a while... until financial reports start trickling in.

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Originally Posted by tomder55

I can't see a justification for this purchase. Big warning came from GM this week. They pulled their ads from FB because they determined it wasn't an effective way to advertise. FB relies on these ads.

Bottom line .. I come here for social media interaction . I am on FB because family members are there ;otherwise I wouldn't bother .

To those who are thinking about purchasing I have one final warning ...... remember My Space ?

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Edit . Will private investors even be allowed at this party ? I have a feeling that the institutional traders will dominate the activity today.

Well if you purchased early enough ,you didn't lose anything.
Facebook Closes at $38.23, Nearly Flat on Day - NYTimes.com
But I think it got propped up by it's underwriters .

A fool and his money are soon parted and no more so than when you invest in overpriced stocks

Facebook is a fad like MSN Myspace etc. try carbon credit investments soon to raise by over 9% :)

Andrew carbon credits will be the mother of all bubbles... very comparible to the housing bubble because the market will be completely rigged by government mandate .

Carbon credits are risky but compared to buying shares in Facebook a common fad if you will, it's a great option, P.S I'm a financial Advisor :) living in the UK in which Carbon credits have already risen from 3.6 to 4.9% within a matter of 2 months. And with the high being roughly 17.6% it's a great option.

I hate to say I told you so, $38 a distant dream now Eh Tom?

Told you guys, Regulated carbon credits is where the money is :)

Clete ;I'll leave you to your fantasies that stimulus pump priming is the answer for the failed deficit ridden European socialist states (paid for by someone else of course) .

There is evidence that Morgan Stanley tipped off insiders to bail shortly after the IPO. That would be criminal activity on their part.

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Originally Posted by tomder55

Clete ;I'll leave you to your fantasies that stimulus pump priming is the answer for the failed deficit ridden European socialist states (paid for by someone else of course) .

There is evidence that Morgan Stanley tipped off insiders to bail shortly after the IPO. That would be criminal activity on their part.

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Just add it to the long list of capitalist illegal activities and stock market scams. There is hope for you yet Tom Google shows a profit, Linkedin shows a profit, so maybe farcebook will show a profit. No Tom I'm not interested in pump priming for the sake of it, I'll leave that to republican politicians but the PIGS economies could do with some serious investment, so rather than putting your industries in China, why don't you take a little less profit and put them there. I expect the europeans would even loan you the money to do it. The yanks are very good at spending OPM Tom and their policies came home to roost, it's time for you to pay the piper and put your money where your mouth is and help out your relatives

If there is evidence of criminal behavior then the people responsible should be frog marched. But tell me the logic behind a policy of screwing investors . If that is a standard business practice there would soon be no investors to play the game. So you're premise that this is standard capitalist practice is illogical and faulty .

Well I don't know Tom they seem to fall for it every time, but of course it is standard capitalist practice to screw whoever they can be it investors, customers, the public

Hello:

Here's what happened:

1st - corrupt bankers were picked to sell the stock.

2nd - corrupt bankers fill media with sales/corporate propaganda.

3rd - corrupt bankers make IPO unavailable to anyone but the rich.

4th - corrupted market claims "technical difficulties" for first 2 hours stock is traded.

5th - corrupt banks dump stock leaving customers/investors with huge losses.

6th - corrupt banks spread propaganda supposedly explaining what happened.

7th - corrupt financial professionals/economists/writers all invent more lies fitting their corrupt paradigm.

8th - corrupt politicians feign concern, collect more campaign money.

I think we need some financial regulation, don't you?

excon

If a person had some disposable funds, it was always a maybe, many high risk things either go broke, or make you rich. I don't even want to discuss Gold futures in the 1980's.
Or Munsingwear stock in the 90's.