http://online.wsj.com/article/SB10001424052702304543904577394113850246518.html?mod=e2fb
I'll sum it up. Google p/e was at 120 when it IPO, LNK current p/e now is near 700 and amazon always had a high p/e. Tech companies have very different way of pricing themselves. FB could pop up a lot. or drift down. No one really knows.
IPO's are not about valuations!!! This is not my first IPO that I'm trying to get. You hear the same story at almost every one. Its overpriced so its going to dip opening day. It price at fair value so it won't go anywhere. The company has peaked and stop growing. It has debt problems. It can't stand up against it's competitors. It's not over/undervalued by its competitors. Some companies don't even make money yet and the go public. I think Tesla is an example of this, it was losing money and it still went public. The point being is all that doesn't matter in the first few days of trading. Short Term. The above all matters in the long run... but IPO are all about the start and first impressions and hype.
OK, about Facebook as a company. In the long run I see it as something special. It is a very unique product and very dominant social network. In fact, it is so unique, new and different that FB has to think differently to make money. Ads are one part of revenue, games and items in apps you can buy and personal information it has on everybody.
I see FB evolving. It is a social networking platform. For the last few years it has already connected people in ways they couldn't imagine before. And if the keep doing this by making us more interconnected with each other it will find a way to become more profitable. It is a start of a new industry. It is a platform that branches out and can encompass anything.
It could starting providing user content like amazon singles or youtube vids, or maybe be more of the telecom as it keeps us connected through video chats, phones. How bout like the news station. Remember KONY 2012 or the Arab Spring. It keeps people informed. Maybe it can be more than an online ID and in the future get used to transfer money from banks. The ideas can go on and on and FB potential to expand its function for it's near 1 billion users can be limitless. This IPO and the funds it raises for FB could be a start of something amazing.
I'll sum it up. Google p/e was at 120 when it IPO, LNK current p/e now is near 700 and amazon always had a high p/e. Tech companies have very different way of pricing themselves. FB could pop up a lot. or drift down. No one really knows.
IPO's are not about valuations!!! This is not my first IPO that I'm trying to get. You hear the same story at almost every one. Its overpriced so its going to dip opening day. It price at fair value so it won't go anywhere. The company has peaked and stop growing. It has debt problems. It can't stand up against it's competitors. It's not over/undervalued by its competitors. Some companies don't even make money yet and the go public. I think Tesla is an example of this, it was losing money and it still went public. The point being is all that doesn't matter in the first few days of trading. Short Term. The above all matters in the long run... but IPO are all about the start and first impressions and hype.
OK, about Facebook as a company. In the long run I see it as something special. It is a very unique product and very dominant social network. In fact, it is so unique, new and different that FB has to think differently to make money. Ads are one part of revenue, games and items in apps you can buy and personal information it has on everybody.
I see FB evolving. It is a social networking platform. For the last few years it has already connected people in ways they couldn't imagine before. And if the keep doing this by making us more interconnected with each other it will find a way to become more profitable. It is a start of a new industry. It is a platform that branches out and can encompass anything.
It could starting providing user content like amazon singles or youtube vids, or maybe be more of the telecom as it keeps us connected through video chats, phones. How bout like the news station. Remember KONY 2012 or the Arab Spring. It keeps people informed. Maybe it can be more than an online ID and in the future get used to transfer money from banks. The ideas can go on and on and FB potential to expand its function for it's near 1 billion users can be limitless. This IPO and the funds it raises for FB could be a start of something amazing.
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