Facebook IPO

Facebook is free. I use Adblocker Plus so I never see any ads. I don't understand their revenue stream. If companies decide that Facebook advertisements don't give them a return then there goes Facebook stock down. Almost out of principle I won't click any sponsored links on Google.

The [joke][/joke] function apparently does not work on this website.

"As Facebook shares continued their slide, regulators launched inquiries into whether privileged Wall Street insiders were alerted to the company's weakening financial projections, leading them to shun the stock or dump shares just as buying was opened to the public.

Morgan Stanley, which led the Wall Street effort to bring the social network public, came under fire following reports that the bank had told some favored clients that the bank was cutting its revenue estimates for Facebook. The lowered expectations came after the tech giant expressed caution in a public filing about its advertising sales on mobile devices."

"One major institutional investor was informed of the lowered expectations during Facebook's IPO "roadshow," in which Morgan Stanley and other underwriters appeared before mutual funds and other big investors to make the case to buy shares in advance of the public offering.

'I am pretty sure the grandma who bought 10 shares of Facebook through her Schwab account didn't get that memo,' said a person familiar with the matter who declined to be named to preserve his business relationship with Wall Street investment banks."

Ref: LA Times

The IPO itself was hyped far more than normal, however just about every internet stock gets the massive hype prior to the offering. From what I understand, the experts were expecting somewhere near the $30 mark. Mega hype followed by massive media, make idiots come out of the wood work to plunk their money down for a piece of the lottery. Nice thing about IPO's, the masses don't get many shares, the bankers and the really big clients get most of the stock.

So after the first rise, the bankers take some of their profits and let the public buy some of the inflated stock. A simple strategy that works every time.

Should have shorted it at $43~ Nice profit if you did

Could've been playing with fire there to man. I'd never be able to sleep.

I still thinks its going down some, but I suppose we'll see how it pans out. I guess I'm pretty interested in this story for some reason. I've bought both books, accidental Billionaire and "the facebook effect". I'll give a book report to the class if anyones interested when I'm done

J

I believe new IPO's can't be shorted for 30 days after its initial public offering (I think).

IPO's for eBay and Google were both under $20, and they both had real value when they went public. I use FB everyday, but I wouldn't have paid more than maybe $8/share IPO for it.

My wife and one son are on it all the time. My other son and myself are of the name/rank/serial # personality & thus don't believe in putting our lives on display.

Personally I have better things to do & if people want to contact me - call/write/email

EXCATLY! I get on to play a game and a quick scan if that, but thats it. My wife is constantly on the dam thing my son not so much.
I'll go a step further about texts, if you have more than a sentencs and half, jus call me, texting back and forth is much more effort than a simple 1 or 2 min. conversation.


J