Facebook IPO

While I never like or want anyone to ;lose bucks in the mkt., I do think its' kinda amusing to see FB fall on its' face after it started trading publicly. All I heard about was "i gotta get in on some of that" and "what fantastic stock to be in" . Well the most anticipated IPO of the century turned out to be over-priced and over-hyped. Unbeivable they assigned a mkt. cap larger than the likes of ford, kraft foods and the like. Insane.

I'm wondering how low a mkt cap should be assigned to it or at least where the price ends up in 6 months or whenever. I've read 7-8 bucks and seen a few that 38 was close but still a bit much. Who lnows maybe it gains some traction and takes off?

I'm guessing mid 20s, but WTF do I know, my track has been not too swell lately.

Back playing with FAZ again, banks in for a rough ride coming up imo

J

Let's talk about it 3 months from now. Short term in the market means NOTHING!!! Let's shake out the scardy cats and make money on the rebound!

I know bob, why I mentioned 6 months. Doubt I'll ever touch any , unless it drops to some ridiculous price.

J

I am more of a Peter Lynch type guy....if I cant touch it, feel it, or taste it, I am not going to invest in it. Which is why I cry everytime I hear about cloud computing stocks.....I really missed that boat!

I see facebook as a fad that took shares from the very similar "my space" web site. What will come along to take facebooks place 2 or 3 years from now?

As for banks, I am having "decent" results trading (not investing) in regional banks, Huntington in particular (HBAN)

Now oil stocks on the other hand are kicking my portfolios ass right now!

weggie

I dont understand how internet advertising works. I have no doubt it makes lots of money ... but why is Google's advertising more profitable than Yahoo's? Or AOL's? Or Facebook? I dont have a clue. So I dont invest in any of them.

Anybody remember My Space?

In advertising perception is reality & there is herd mentality when it comes to ad buys. FB is seen as cool/hip etc and if you are a marketer this is where you need to spend your money as the story goes. The problem is that it is difficult to determine a return on investment with FB as GM is finding out (they cancelled their FB spend)

[joke] Will DonDiego's great-grand kids be bemoaning the government bailout of Facebook? [/joke]

I just realized I have a thousand in cash in my IRA. Where should I invest it for some short term excitement?

I have bought both Google and FaceBook ads. The primary problem with FaceBook ads is that ads being shown in a content rich environment typically don’t perform well. If you think about this it is simple to understand why. Do you go to FaceBook to look for products and services to buy or do you go there to catch up with friends and family?

People using a searching engines are typically looking to buy a product or service be it a book on Amazon or an Airfare to Las Vegas. Google has similar problems on YouTube nobody clicks on the ads and those that do aren’t looking to buy something anytime soon. After all your on YouTube to watch funny cat videos not to buy something. FaceBook doesn’t have a profitable revenue model and the idea that you can convert FaceBook to a place where it will encourage people to buy products and services when they go there just doesn’t seem feasible.

Simple, many more people use Google than either AOL or Yahoo. More users means more chances for people to click on the ads and buy product.

Also you get the featured product on searches which shows up at the top of the page, which can result in more people buying what your product.

The investment bankers jacked the price up on the IPO to levels it should not have been. Seems they originally the stock would come out around $30. Which seems to be alot closer value. They have 900 million users, those numbers are just crazy but the job now is to turn those in to dollars. Like many I don't understand who this type of business works.

If the market continues losing value it will have an effect on facebook price also. When and if the market starts to rebound some FB could reach $40 or again this year.