Popular social networking service begins offering stock for public trading

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48 Responses to “Popular social networking service begins offering stock for public trading”

  1. Funk Daddy says:

    Don’t these people know that today’s IPO is just a sweet ass wealth transfer benefitting the private stockholders, who bought in long before, at the expense of those who don’t know that “meteoric trajectories” generally end in fire and ash?

  2. Matthew Wong says:

    Okay, here’s The Plan
    1. Let’s all stop using Facebook.2. The price of shares will drop3. We’ll buy up it all up really cheap4. Then we all start using Facebook again5. ?????? (obligatory question mark step)6. Profit  

  3. awjt says:

    “Yahoo!”

  4. EH says:

    Boy, his haircut sure is telegraphing MPB.

  5. Jer_00 says:

    I still haven’t seen a single bit of analysis that says exactly why I’m supposed to believe that Facebook is worth $38 a share.  Anyone have a link?

  6. darkjayson says:

    Type facebook stock into google and first link is there share on the nasdaq currently at 38.27 multiply that by 900,000,000 users you get 34,443,000,000 or 34 billion which is around what it is valued at, so $38 per user. Not sure if that is how they calculate it but its close.

  7. Navin_Johnson says:

    Lot of suspicious looking guys in hoodies in that pic.

  8. michaelismichael says:

    I opened the thread hoping to join in a public hate-in on Facebook. I feel so let down.

  9. Anne Onimos says:

    A photograph of people photographing a photograph.  This is The Golden Age of Idiocy. 

  10. h4x0r says:

     I predict the stock soars as a result of an announcement about new feature(s) and revenue potential (Or speculation about such an announcement/plan) . It will then fluctuate and hold steady around $80-$100/share. 1 year from now, it will be teetering at around $250/share or thereabouts….right before some new/innovative answer to Facebook comes out, it plummets to $25/share after some new craze takes hold…or, we just get sick of Facebook.

    • elix says:

      I’ll make the popcorn, you bring the drinks. Next major privacy snafu at Facebook, I’m kicking my heels back and watching the market.

  11. Alex Susemihl says:

    I believe Stockenfreude should be feminin, as Freude is feminin… assuming it’s german. Awesome concept otherwise!

    • elix says:

      I don’t know German, but I do know that it has gendered nouns. English doesn’t, so the gender’s discarded in translation. But your point makes sense. :D

  12. Petzl says:

    “Popular social networking service” facebook, as opposed to… the fried chicken franchise or hardware supply store facebook?

  13. twianto says:

    So it closed exactly like it opened, indicating that the stock price was extremely realistic, neither too low nor too high? What incompetent hicks! Har har!

    • filebunch says:

      Not exactly.  The investment bank who handled the IPO had to buy millions of shares themselves to keep the price at $38.  

  14. semiotix says:

    Yeah, regarding STOCKENFREUDE

    I can get behind almost any kind of Facebook-hate, but the only thing that’s remarkable about the closing stock price is that it’s so close to the IPO price. And all that means is that Facebook’s accountants did a great job in setting that initial price.

    Facebook neither needs nor wants a huge first-day bubble in its stock price. Any profit someone else makes on the first day is profit Facebook missed out on! I can promise you that the champagne corks are being popped at Facebook HQ over this result.

    • penguinchris says:

      I agree with that analysis. Furthermore, I don’t think it’ll ever rise to e.g. Apple or Google levels unless they plan to expand their business into other areas – which I’m sure they know would be risky for them. And I think they know that.

      They surely know they’re already worth a ridiculous amount of money for what they are, and I think they’ll play it smart and plan for slow and steady growth – they can certainly afford to.

      Which means that in ten or fifteen years we’ll all be thinking “why didn’t I buy Facebook stock back then?”, but no Wall Street assholes will become millionaires overnight on the back of Facebook. That’s making a huge assumption of course that they’ll last that long- though I think they could; they’ve shown better promise than e.g. MySpace did, though haters like to trot out the list of social networks that everyone moved on from to the next big thing.

      Seems smart all around. I have a Facebook account with little on it – I was a freshman in college in 2004 and my school was one of the ones Facebook was initially rolled out to after Harvard and Stanford – but I’m a naysayer as much as anyone at BB. Doesn’t mean I can’t think they’re making smart business moves :)

      • Toby Graves says:

         The thing is: Google and Apple are *useful*.  Facebook is worthless, really except as a form of entertainment.

        • Shashwath T.R. says:

          “except as a form of entertainment” – That means it’s worth something; at least as entertainment.

          The ridiculously high-value of films tells you what entertainment seems to be worth…

          You may have problems with that, but apparently many people don’t…

          • Toby Graves says:

             Films and Facebook are quite different things.

          • Shashwath T.R. says:

            @twitter-14059174:disqus  If your charge is that Facebook is of no use except as entertainment, and if entertainment gathers that much revenue, it follows that there’s nothing surprising about Facebook having that value.

            Entertainment has value too!

          • twianto says:

            It’s quite simple: everything I don’t like is worthless. There you go!

        • EH says:

          Even Microsoft is “useful,” yet (last I checked) their stock has been flat for over a decade.

    • CourierPica says:

      {the only thing that’s remarkable about the closing stock price is that it’s so close to the IPO price. }

      This is not remarkable due to the job the accountants did in setting the price. It is remarkable due to the job the investment houses did to keep the stock from cratering.

      Check out Marketplace’s analysis: http://www.marketplace.org/topics/business/weekly-wrap-what-happened-facebooks-stock Every time the stock started to slip below the initial offer, the big houses stepped in to keep it afloat.

      Rather than being priced properly, I suspect some people are in for a haircut once the big houses let off the gas.

  15. pebird says:

    So, Facebook is valued at $100 billion, and raises $16 billion in IPO. Public gets to own 1/5 of public company. Hmmmm.

  16. Uthor says:

     True.  One thing the Planet Money article misses is that Facebook will probably try to diversify into other things beyond advertising, monetizing their programing platform.

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