General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsBLOODBATH: Watch Facebook Investors Panic to New Lows
Facebooks (NASDAQ:FB) stock has some serious troubles. Facebook was supposed to be the biggest IPO of the current market cycle, but its quickly becoming the fastest way to lose money. The stock crashed over 9% yesterday and is already starting the day with more sellers lined up than buyers. This is becoming one of the worst twists for whats been a story-book business to pre-IPO.
Only one question remains in the short term: how low can Facebook go?
-snip-
If we slap Googles (NASDAQ:GOOG) 7x revs multiple at its IPO onto Facebook, Facebook will land at $19. If we start cutting into the lofty P/E ratio on justified issues over slowing growth, and slap on a still nosebleed 50 PE, we get $19.50. You can buy Googles earnings for 18x and Apples (NASDAQ:AAPL) for 14x while still getting great growth. So todays current 75x for Facebook seems, well, financially illiterate.
http://wallstcheatsheet.com/stocks/bloodbath-watch-facebook-investors-panic-now.html/
Mosby
(16,394 posts)$26.95 right now (12pm eastern time)
southernyankeebelle
(11,304 posts)beginning. I think there was alot of insider trading going on. This is the fallout. The sad thing is people outside wallstreet thought they were getting in on a good deal and now they got hit.
Quantess
(27,630 posts)Someone always profits from these surprises, right?
Tansy_Gold
(17,880 posts)his brazilian american brazilian partner
the stock brokers who collect commissions on all the buys, all the sells
Mosby
(16,394 posts)sharp_stick
(14,400 posts)you can more or less place a bet that a stock is going to fall and when it does you make the money off of someone who was betting that it would never get that low.
Whenever a dollar is lost by someone there is someone else that has received that dollar.
Harmony Blue
(3,978 posts)are making a killing.
Unfortunately, if you are not even remotely a follower of the stock market this was indeed a trap.
MadHound
(34,179 posts)From the day they decided to go public, to the coy selling of the IPO, it has been nothing but a clever gimmick. I mean really, you're valuing a company that makes, maybe, a billion a year at 100 billion? That simply doesn't compute, never has.
But hey, Zuckerberg and his buddies have made out like bandits, and even if(please dear God make it so) Facebook collapses and folds tomorrow, they will walk away with billions. That's all they care about.
richmwill
(1,326 posts)...Or because their instant millions in profits didn't magically appear. Last I heard, the word "risk" still existed.
Journeyman
(15,042 posts)The only thing is, in every killing someone's left dead.
Zalatix
(8,994 posts)Don't ya know the market isn't a zero-sum game???
cbdo2007
(9,213 posts)sendero
(28,552 posts)... Facebook deserves to be fleeced. You would have to live in a cave to not know that the IPO was severely overpriced and that the company's revenue prospects were and are meager at best.
Someday, everyone will understand Wall Street and their shenannigans. For the time being, there were just enough suckers left to float one last pink fart in a punchbowl.
Zalatix
(8,994 posts)Assuming that you could do it, of course.
Capt. Obvious
(9,002 posts)I'm waiting for it to bottom out before buying
Harmony Blue
(3,978 posts)have to wait it out.
cbdo2007
(9,213 posts)And no....I don't think it's worth that much, but after all the hype has died off people will start bringing it back up to that IPO level and beyond.
Capt. Obvious
(9,002 posts)Then it depends on where Facebook goes.