• Facebook share price continues to plummet, now below $29; rival site abandons IPO plans
    49 replies, posted
[url]http://www.bbc.co.uk/news/business-18257043[/url] [quote=BBC News][img]http://imgkk.com/i/ufpl.png[/img] [b]Facebook shares have dipped below $29 for the first time since their flotation to a new low.[/b] The shares were launched at $38 less than two weeks ago during its high-profile flotation, which valued the firm at $104bn (£66bn). [b]Since then, Facebook's shares have lost almost a quarter of their value.[/b] [b]Russia's biggest social network, VKontakte, has now postponed its stock market launch, fearing a repeat of Facebook's problems. "The IPO of FB [Facebook] destroyed the faith of many private investors in social networks," said chief executive Pavel Durov in a message posted on Twitter.[/b] Facebook shares closed down 9.6% to $28.82, just above its low of $28.78. One reason for the fall in shares since its initial public offering (IPO) is that Tuesday was the first day that options on Facebook stock began trading. Options are a form of derivative, that allow bets on the future direction of the stock. It appears that most investors are betting Facebook shares will head lower. "Facebook's stock market debut is already going down as one of the most troubled of recent years," says BBC technology correspondent Rory Cellan-Jones. The situation is a remarkable turnaround from recent weeks, when the eight-year-old firm's share sale was over-subscribed. [b]Lawsuits[/b] The social networking site has transformed the way in which hundreds of millions of people around the world communicate. It is also transforming the way companies advertise to existing and potential customers. But Facebook's 900 million users helped the company generate just $1bn in profit last year, and there are concerns about its ability to increase profits in the future. The flotation was disrupted on its first day of trading by technical glitches on the Nasdaq stock exchange. The share price has since slumped amid worries that the company was over-valued by advisers marketing the float. Now, a group of investors has issued a class-action lawsuit alleging that Facebook revenues were revised down because of a surge in the number of people using mobile devices for apps and connection to websites. The suit targets Facebook, its founder Mark Zuckerberg and the banks behind the flotation, including lead underwriter Morgan Stanley. The share sale in New York raised $16bn for Facebook. Recent reports suggested that Facebook is to launch its own smartphone by next year.[/quote] [img]http://imgkk.com/i/-12u.jpg[/img]
[img]http://www.fohguild.org/forums/attachments/comments-suggestions/138284d1272137507-facebook-like-button-wtf-like.png[/img]
Haha mark shoulda sold every single share he had right after they went public.
There goes your empire, zucker berg
[QUOTE=Ryuken;36124298]There goes your empire, zucker berg[/QUOTE] Because facebook is totally going to disappear and Zuckerberg end up penniless because of this. .
Valuing a social networking site at 104 Billion dollars was pretty much guaranteed to fail. 60-70 billion or something would have been better. That is probably where the value will end up. It can't continue going down like this
Well, that's what happens when you have a company with no product, no sales and no revenue but advertising.
Looks like a good time to buy shares. Let's face it, facebook isn't going away for a while.
Now hopefully it can die and we can get another social networking site that doesnt keep making crap choices
And now... invest invest invest!
[QUOTE=S31-Syntax;36125026]And now... invest invest invest![/QUOTE] I'd still never pay $28 a share for Facebook. Facebook would have been a great investment 3-4 years ago, as you'd be raking it in now. But it's hit the height of it's popularity, and things can probably only go downhill until the facebook phone hits shelves.
who the fuck wants facbooke i mena oter sites are fucarking golden awnawyays
[QUOTE=Ruski v2.0;36125140]who the fuck wants facbooke i mena oter sites are fucarking golden awnawyays[/QUOTE] sir, have you been drinking this evening? step out of the internet, sir
[QUOTE=Lizzrd;36124220]Haha mark shoulda sold every single share he had right after they went public.[/QUOTE]He would have lost virtually all control of his own business to investors. The way it is now, he still has majority control over Facebook, meaning that even if every single other investor voted against him, he could still overrule them just by having more shares. He didn't want to go public to begin with.
Let it fall.
[QUOTE=person11;36124407]Valuing a social networking site at 104 Billion dollars was pretty much guaranteed to fail. 60-70 billion or something would have been better. That is probably where the value will end up. It can't continue going down like this[/QUOTE] What are you basing this "better" value off of? Or are you just picking a random range of values below 104 since you already know that was too high?
My sides are splitting.
[QUOTE=Used Car Salesman;36124472]Well, that's what happens when you have a company with no product, no sales and no revenue but advertising.[/QUOTE] this is the sort of post that happens when you're really dumb and don't know what you're talking about
the amount of people in this thread that don't understand how stocks work is astounding when the stocks open up with a price like that they are going to fall right out of the gate, they do every single time. they never have and never will shoot straight up for a company such as this. it takes time for them to climb back up, which they most definitely will
[QUOTE=Ruski v2.0;36125140]who the fuck wants facbooke i mena oter sites are fucarking golden awnawyays[/QUOTE] hope u got some weed for the hangover
[QUOTE=Pandamox;36126906]the amount of people in this thread that don't understand how stocks work is astounding [/QUOTE] not really, considering the fact that wall street related things are a confusing mess most Americans don't wanna deal with
[QUOTE=Sam Za Nemesis;36127224][img]http://tommytoy.typepad.com/.a/6a0133f3a4072c970b0153910e98b6970b-800wi[/img][/QUOTE] Google also didn't have a poll come out just a day before the IPO showing that 50% of people thought they were a passing fad. Facebook doesn't have a sustainable business model that appeals to Wall Street. If it stops being popular enough to draw advertisers, it collapses. They don't produce a product, they don't directly gain revenue from customers, and they're entirely dependent on page views and eyeballs on ads. Google now has an actual product (Android), more diverse holdings, and an arsenal of patents. There is no comparison at all between the two.
I'd use facebook if they didn't have all of the fucking zynga games and the adverts that copy other games and are nothing like the game being copied.
[QUOTE=Used Car Salesman;36127438]Google also didn't have a poll come out just a day before the IPO showing that 50% of people thought they were a passing fad. Facebook doesn't have a sustainable business model that appeals to Wall Street. If it stops being popular enough to draw advertisers, it collapses. They don't produce a product, they don't directly gain revenue from customers, and they're entirely dependent on page views and eyeballs on ads. Google now has an actual product (Android), more diverse holdings, and an arsenal of patents. There is no comparison at all between the two.[/QUOTE] There is a huge comparison, are you kidding? Sure, they have a product now, but Google exploded when they did their IPO, and they were the same exact thing: A company getting its revenue from nothing but advertising. [url]http://www.tradingtoday.com/20-google[/url] [editline]29th May 2012[/editline] [QUOTE=zombini;36127490]I'd use facebook if they didn't have all of the fucking zynga games and the adverts that copy other games and are nothing like the game being copied.[/QUOTE] I'm not sure why people complain about this so much. First off, get Adblock+ (if you don't already), and you can just block the dumb apps and you wont get notifications from them.
[IMG]http://puu.sh/xDOs[/IMG]
[QUOTE=Used Car Salesman;36124472]Well, that's what happens when you have a company with no product, no sales and no revenue but advertising.[/QUOTE] Isn't that television in a nutshell, though?
oh my god the current television model,... we could make a thread about how bad that is
[QUOTE=yawmwen;36127688]Isn't that television in a nutshell, though?[/QUOTE] My god, nope
[QUOTE=Kommunist;36127945]My god, nope[/QUOTE] What product does telivision produce? None. [editline]30th May 2012[/editline] Or at least the same type of product that Facebook produces.
[QUOTE=yawmwen;36127958]What product does telivision produce? None. [editline]30th May 2012[/editline] Or at least the same type of product that Facebook produces.[/QUOTE] Television isn't a company. What are you trying to say?
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