Saturday, May 19, 2012
Facebook’s long awaited IPO dominated the news Friday.
Wall Street, salivating over the anticipated value of the social-media giant, said the company was worth as much as $104 billion, opened at $38 a share, selling some 82 million shares in the first 30 seconds. Seven minutes after the opening, 110 million shares had traded, with the stock eventually reaching a high of $45 a share. But by 4PM, the close of trading day, the price for a share of Facebook had settled to $38.23, an upside of just .23 cents a share.
Which begs the question? Was the deal over-hyped and over-valued? Some on Wall Street say yes. While the IPO earned Facebook founder and CEO, Mark Zuckerberg billions of dollars, institutional investors saw little return and small investors were virtually locked out from a chance to invest in the IPO.
My view is, the Facebook IPO was much ado about nothing.
From the Left 
Facebook is a company that produces nothing. No nuts and bolts, no cars or trucks, no medicine and it doesn’t fly passengers from point A to point B. It doesn’t produce food, energy or computers. Facebook is a sham and yet millions believe and invested in it. Mark Zuckerberg is laughing all the way to the bank.
The value of Facebook is largely derived from users who “click through” their ads.
According to a recent survey in USA Today, a whopping $57 of users don’t click through the ads. So how can the company be worth $104 billion? No one can explain it.
My nephew is on Facebook all the time. I asked him what he does with it. He said “I talk to my friends.” Isn’t that what a telephone or a cell phone is used for? I’m too old to understand Facebook. I think I’m doing well just to use a computer.
$104 billion? So “the Street” claims Facebook is worth more than Apple ($65 billion) and just slightly less than Toyota ($123 billion US)?
Sorry but, I don’t believe it.
My favorite comment was from a Facebook heretic on CNBC who said:
“$104 billion of value for something that doesn’t exist.”
I wonder how long it will take for Facebook to follow Yahoo off the cliff and into oblivion?
Some reports speculated a share of Facebook stock would reach $300. The money boys were wrong and looked like fools on the hill.
Anyone heard of penny stock? I give Facebook 5 years.
Investing in Facebook? There’s a sucka’ born every minute.
Christopher – The Los Angeles Times and you aren’t far apart on the Facebook IPO launch.
Facebook’s Epic Fail
http://www.latimes.com/business/money/la-facebook-fail-20120518,0,5818946.story
Reality check: Chipotle, the burrito restaurant chain, saw shares close at $392.13 on Friday. More than 10 times that of Facebook.
Rendaculous – A stock share of Chipotle is worth $392.13? NFW?
Well, I suppose it makes sense. People have to eat and we often go out to eat. However, people don’t need Facebook to survive. If they do then they’re addicted and need treatment.