Facebook shares

[Bunk]

If you are being asked to pay to highlight a post, you are being charged to post. It's logical and true. Not all posts, that's given. However, I have said, imo, it's the thin edge of the wedge.

Yes, you're being charged to post in that particular case. If you put it another way though, can you post for free? The answer is still (and I would expect always will be) yes.

[Old Hack]

Yes, you're being charged to post in that particular case. If you put it another way though, can you post for free? The answer is still (and I would expect always will be) yes.

That's a reasonable post bunk. No dramatic nevers, just wjhat you think. I think it will stay, in some parts free, but that will be really reduced. I genuinely think this is just the start. I don't see how a company that 'only' made £650m profit, can have been valued at $105b. I just can't see how.

Last night, on the news, they were saying that the company had been valued at 1000 * its annual earnings where the highest elsewhere, was apple and google at 20 times annual earnings, GM being valued at 3.5 its annuals. When you see how Google and Apple get their money, and their business model, it doesn't take a genius to work out they must have plans to up the earnings, massively.

I can't see them able to do that on games and advertising alone. Google has the perfect platform for advertising revenues, as it's a search engine, yet they can't get near the 1000 valuation.

Kind of asks some questions

[scooby]

That's a reasonable post bunk. No dramatic nevers, just wjhat you think. I think it will stay, in some parts free, but that will be really reduced. I genuinely think this is just the start. I don't see how a company that 'only' made £650m profit, can have been valued at $105b. I just can't see how.

Last night, on the news, they were saying that the company had been valued at 1000 * its annual earnings where the highest elsewhere, was apple and google at 20 times annual earnings, GM being valued at 3.5 its annuals. When you see how Google and Apple get their money, and their business model, it doesn't take a genius to work out they must have plans to up the earnings, massively.

I can't see them able to do that on games and advertising alone. Google has the perfect platform for advertising revenues, as it's a search engine, yet they can't get near the 1000 valuation.

Kind of asks some questions

To be fair, you float to get cash for investments... They may have something fairly big lined up, but it must bring in money to attract the investors.

[Old Hack]

To be fair, you float to get cash for investments... They may have something fairly big lined up, but it must bring in money to attract the investors.

No, I get all of that, but 1000 * earnings? That's a massive ratio, the largest in history if I am right.

Somethings changing. I think the class action against them, will be something about this to. Something is changing with their business model, if I was to hedge a bet. The banks issuing the IPO, all bought in, so must know something, as they're not all 'that' stupid. Just makes me think things will be changing.

[d000hg]

No, you weren't, you were, as ever, trying to discredit someone, by calling them stupid. It's the cheap way out.

No, I really don't feel the need to do that.

You've said they will never do something they are actually doing.

I have said I think they will.

And I am being unreasonably stupid here?

They're not charging to post, they're charging for a new service - basically advertising. And - yes

[scooby]

No, I get all of that, but 1000 * earnings? That's a massive ratio, the largest in history if I am right.

Somethings changing. I think the class action against them, will be something about this to. Something is changing with their business model, if I was to hedge a bet. The banks issuing the IPO, all bought in, so must know something, as they're not all 'that' stupid. Just makes me think things will be changing.

Totally agree! big NDA's must have been signed for those who invested... I'm with you.

[fullyautomatix]

No, I get all of that, but 1000 * earnings? That's a massive ratio, the largest in history if I am right.

Somethings changing. I think the class action against them, will be something about this to. Something is changing with their business model, if I was to hedge a bet. The banks issuing the IPO, all bought in, so must know something, as they're not all 'that' stupid. Just makes me think things will be changing.

They have raised billions in cash from this IPO. Obviously it will be invested in the business like buying other companies and introducing features that make money. The business model of the silicon valley companies seem to be to get millions of users to use the system and then think of exploiting those users. Google didnt start on their advertising model for a lot of years, they only focussed on search and getting the users in.

[Old Hack]

They have raised billions in cash from this IPO. Obviously it will be invested in the business like buying other companies and introducing features that make money. The business model of the silicon valley companies seem to be to get millions of users to use the system and then think of exploiting those users. Google didnt start on their advertising model for a lot of years, they only focussed on search and getting the users in.

In all fairness, FB are already exploiting the users, I just think it wil get worse.

Can anyone else think of an IPO that valued the business at such a ratio? I have been looking and can't find any.

[fullyautomatix]

In all fairness, FB are already exploiting the users, I just think it wil get worse.

Can anyone else think of an IPO that valued the business at such a ratio? I have been looking and can't find any.

Why should all IPO's be the same ? I dont think there was an IPO where the business had millions of users using the system. Last time it happened it was Google and look where they are now.
The problem is that a lot of people are thinking about Facebook business model as if all the users would use it like we do. I have never clicked on a Google ad but still Goog make billions because of targetted ads. For every intelligent user there are hundreds of muppets who will click anything that looks tempting. Bear in mind that Goog, FB etc make money at point of click and not at point of sale. It makes a big difference.

I am not saying that the IPO is over priced because I also think its over priced but sometimes its easy to underestimate a company's revenue model.

[Old Hack]

Why should all IPO's be the same ? I dont think there was an IPO where the business had millions of users using the system. Last time it happened it was Google and look where they are now.
The problem is that a lot of people are thinking about Facebook business model as if all the users would use it like we do. I have never clicked on a Google ad but still Goog make billions because of targetted ads. For every intelligent user there are hundreds of muppets who will click anything that looks tempting. Bear in mind that Goog, FB etc make money at point of click and not at point of sale. It makes a big difference.

I am not saying that the IPO is over priced because I also think its over priced but sometimes its easy to underestimate a company's revenue model.

Possibly misunderstood me, I am just asking if ever before, there's been an IPO at 1000 * earnings ratio. Its that I found amazing, as though something was not being disclosed. I am just trying to find others like it. Thats all.