Facebook IPO decline is second worst on record

25 replies
According to the San jose Business Journal

"Facebook has escaped the dubious distinction of having the worst stock market debut of a billion-dollar company in history at the one-month anniversary of its IPO."

The question is: do you think the negative press from the IPO will help or hurt Facbook as a marketing platform for WSO type products?


My gut feeling is the IPO will bring more mainstream attention to
Facebook as an advertising source for business.


Your Thoughts?


Mark
#decline #facebook #ipo #record #worst
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    • Profile picture of the author ttdub
      Originally Posted by Justin Mandel View Post

      Mark Zuckerburg's happy. That's all that matters.

      I have read that if FB stock tanks it could topple the US economy...
      The US economy is already toppled.
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  • Profile picture of the author Warrior X
    I have read that if FB stock tanks it could topple the US economy...
    That's going to keep me up at night
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  • Profile picture of the author onSubie
    I was also wondering if facebook would become more IM or ad friendly after the IPO bombed based on a lack of confidence in their ability to generate significant ad revenue, especially for mobile devices.

    Maybe the ad rules will be more relaxed again in order to get more advertisers and revenue.
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  • Profile picture of the author SocialMediaOwls
    Why would you give a 5 year old Social Media company 100 billion dollars?

    That's idiotic. The time to invest or give them a crap load of money is in the first 2 years. Not when they are in geriatric stage.

    stupid stupid, stupid
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  • Profile picture of the author Krassy
    Sure hope it doesnt crash anymore.

    But it really was severely overvalued in its IPO.

    Facebook is either on its last legs or its going to skyrocket
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    • Profile picture of the author Martin Percival
      It's insane when you compare the P/E ratios of Facebook with someone like Apple. Even now, the amount of cash they bring in makes them look cheap compared to so many of the IT heavyweights.

      Disclaimer - I bought APPL when it was even cheaper
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  • Profile picture of the author MarkBradley
    I heard that now that most of the Facebook managers are rich they won't have the desire to work hard anymore. I guess this could be good news for google plus.
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    I Love Conversion ->> Make your Facbook Pages Convert. Get into the Lab -->> Facebook Conversion Lab

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    • Profile picture of the author Haroon Ballim
      Simply a matter of Facebook pricing its stock too high. Good for existing shareholders like Mark Z but bad for those who paid $38 for the stock.

      The drop in the stock price does not reflect any drop in Facebook usage rather just an IPO that was overpriced [ highly overpriced ]
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  • Profile picture of the author VinnieVegas
    I think Facebook peaked in 2010. I think one problem is that while it is a data miner's paradise, much of the information people offer just isn't true. Facebook makes it easy to appear to be more interesting than you actually are. So much of that data to be mined for advertising, etc, just isn't real, and that leads to dubious results.
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  • Profile picture of the author Lori Kelly
    The lawsuits are already flying. The IPO must have had the same shysters that bundled up mortgage backed securities.

    The question is: do you think the negative press from the IPO will help or hurt Facbook as a marketing platform for WSO type products?
    I don't know how successful or unsuccessful FB WSO's are because I don't buy them and I don't do much with FB. In fact, other than the FB fan page as a means to generate traffic, I can't stand it from a personal standpoint.

    Facebook's revenue is what? Supposedly revenue generated from what, the ads? I haven't followed it much but I honestly couldn't care less.

    There was no way I'd part with my hard-earned money to invest in a company that was obviously way overvalued.
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  • Profile picture of the author jivens
    Banned
    I know it sounds corny but I have to say it.....

    BIG money....BIG problems

    There, I feel better now. Like above, I wouldn't hand money away to a company in it's first five years. Myspace was the place to be once too (not saying it was better than FB, even though I thought it was) and look what happened....

    Google might be putting their party hats on
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  • Profile picture of the author Berg Canon
    I wrote a good piece on this back awhile ago but I couldn't post it here because I was a new member and couldn't post links yet.

    The article is still valid though.

    Is Facebook Still a Good Investment | How to Day Trade
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  • Profile picture of the author AdwordsMogul
    Originally Posted by MarkBradley View Post

    ...
    The question is: do you think the negative press from the IPO will help or hurt Facbook as a marketing platform for WSO type products?

    Your Thoughts?
    ...
    IPOs are probably the last thing on a WSO buyer's mind.
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    • Profile picture of the author Martin Percival
      Just read a piece suggesting they are going to sue Nasdaq for "ruining their IPO" and then move to the NYSE.

      Like it's the mechanics of the market that dropped their price, not the fact it was waaay over-hyped
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      • Profile picture of the author daddykool
        Originally Posted by Martin Percival View Post

        Just read a piece suggesting they are going to sue Nasdaq for "ruining their IPO" and then move to the NYSE.

        Like it's the mechanics of the market that dropped their price, not the fact it was waaay over-hyped
        Good stuff buddy!

        FB is no more as FB, it has evolved to a point, that MZ had to flog it off! The IPO should have been left at $14-15, it would (even though though the total market value would be less than $60b) be in a great, profitable and inviting place for further investors.

        We posted a thread elsewhere on "If FB did a WSO" and it looks like the $9 price is beating the $49 price

        Could FB become another Boo .com disaster? Now that is a good bet!
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  • Profile picture of the author mogulmedia
    Surely most people knew this was going to happen. The company was seriously over-valued thanks to media hype.

    Personally I think that was generated by the market makers getting retail traders to push prices up while they sold the hell out of it.
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  • Profile picture of the author MarkBradley
    What is going to be an interesting battle for mobile revenue.

    Even though the IPO lost value FB has a ton of cash!

    Like a successful WSO product launch. Now they can go into any new vertical martet they choose. May be wise to study their next move and promote a product or service to jump on.

    Mark
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    I Love Conversion ->> Make your Facbook Pages Convert. Get into the Lab -->> Facebook Conversion Lab

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  • Profile picture of the author williamk
    Banned
    That really isn't a news to me. I always thought that they will go downhill pretty soon. Good to see that it is finally happening.
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  • Profile picture of the author MarkBradley
    Here is the lates on Facwbook stock as of June 26th Facebook is at $33.10

    Get latest quote here: Facebook Stock Price - Money Morning - Only the News You Can Profit From

    From Money morning: "
    Over the past several days, the Facebook stock price has done a stark about-face.
    In fact, Facebook (Nasdaq: FB) shareholders just might get the pop in price they have been hoping for ever since the social media giant debuted May 18.
    Worries that Facebook's shares were overvalued and concerns that the company would not be able to grow revenue fast enough had pummeled shares lower by as much as 32% from the May 18 IPO price of $38.
    After a disastrous IPO and a dismal showing in the weeks that followed, shares of Facebook are finally showing real signs of life. The tide may be turning.
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    Mark Bradley

    I Love Conversion ->> Make your Facbook Pages Convert. Get into the Lab -->> Facebook Conversion Lab

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  • Profile picture of the author tpw
    Blah, blah blah blah blah...

    Blah blah blah blah...

    Yep, learned nothing here.
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  • Profile picture of the author goindeep
    Originally Posted by MarkBradley View Post

    According to the San jose Business Journal

    "Facebook has escaped the dubious distinction of having the worst stock market debut of a billion-dollar company in history at the one-month anniversary of its IPO."

    The question is: do you think the negative press from the IPO will help or hurt Facbook as a marketing platform for WSO type products?


    My gut feeling is the IPO will bring more mainstream attention to
    Facebook as an advertising source for business.


    Your Thoughts?


    Mark
    Does L O L suffice as a response?
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  • Profile picture of the author Mohit Anand
    I just follow one rule: Rarely buy IPOs of good companies as they are generally over priced.

    If ever I buy them, there are two options:

    1. Book the profit or loss on the same day of listing. Or
    2. Keep it in my long term investment portfolio. As a good company will generally give huge returns after 5-10 years. (Tip for current FB shareholders )
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  • Profile picture of the author temp_12000
    why FB worth $38? because someone said so. why he said so? because he has many shares. that says something already.
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  • Profile picture of the author GMT
    I too don't understand the mentality of valuing a company like Facebook a 100 times what it's made in profit. I thought the idea of investing in something was getting a return on your investment, yes Facebook has an audience of a billion or so users, but how much more profit can they really squeeze out of ads that they aren't already?(without losing their users that is). To be honest at a 100 billion investment, to me, what the world is saying is that thet see Facebook, an unproven company(short of their social site), as one that will continue to produce winning services/products that'll exceed a hundred billion. While possible, I find this unlikely, but I suppose only time will tell.
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