Hi there, The Upcoming Facebook IPO is quite big, estimated at 100 billion. The interesting question is if it will follow GroupOn or it will last for decades until the whole population is hooked on social media. There appear to be a lot of speculation involved either way. I compiled an analytical report from various sources but I would definitely like to hear the opinion of those that are thinking of going in. Regards, John
Let's see, Making $2 billion in thousands $2 million taken over the next 100 years with I/Y 15% discount rate PV is $13.333 million per share, meaning the IPO is completely overvalued and unless I'm wrong about how much revenue they're getting, it's the kind of thing most people don't realize that the point of an IPO is so old owners can sell at a high price and exit. Kudos to Zuckerberg. That does not look like a good investment to me, especially at $100 billion, but last auction was at $30 on Second Market and I don't know how many shares are outstanding because they have yet to complete the private securities markets transactions and are still under distribution in a horribly inefficient market.
Anyone knows when it will IPO? Here is a small article about it http://www.forbes.com/sites/petercohan/2012/01/30/four-reasons-why-facebooks-ipo-is-irrelevant/
The money has already been made by the wealthy and rich who got in on the secondary market, once this goes to the public its pretty much worthless to invest in, its completely overvalued at $100 billion, its over valued at $20 billion as well....if they took this company public years ago around the time myspace was purchased by news corp than I could say it would have been a good investment, this company has been propped up by all the people buying on the secondary market and they will be the ones making hundreds of millions if not billions of dollars on this ipo while the little guy starts to buy the company valued at $100 Billion come on, its a worthless investment...Anyone buying on the open market is going to look like a fool, there is no way you will ever see the kind of return that the guys on the secondary market got on their investment.
no one here knows anything about whether this is good or bad. look back at all the anii who bashed GOOG at 100. or you can ask them yourselves, at the counter where they serve you Big Macs.
Facebook is just another Bebo or MySpace on the social networking road. Google watch out also. I am already using duckduckgo for searching.
Thats all facebook is, everyone thinks this trend is here to stay, everyone got tired of friendster, they got tired of bebo, they got tired of myspace, they will get tired of facebook...something new always comes out that replaces the has been and facebook is already the has been.
Isn't the real question whether it is an interesting stock to trade. I presume that most of us trade all sorts of crap that is overvalued. I assume that the intrinsic value of most of the currencies I trade is zero. If I take 10 ticks out of E6 in the AM and 14 more after lunch do I care? No ... I do not care. I only care about 24 x $12.50 x whatever number of cars I trade. I do not trade equities but if I did would I care what Facebook is worth now or in five or ten years? Do i care about their balance sheet or ad revenue or anything else? No ... I do not.