Will you be buying Facebook?

[fullyautomatix]

When GOOG went IPO investors felt they were overpriced but the folks who bought stocks made a lot of money. It was the ability for GOOG to somehow conjure up billions in profit from Ads.

Facebook, IMO, has the same business model as GOOG in the sense that the bulk of the revenue/profits will come from Ads uniquely targetted.

THey have potential to make it big if they follow a proper strategy. Google once thought their main rival was Facebook and rightly so. If you "like" Arsenal football club in Facebook, its pretty easy to advertise Arsenal merchandise when you login. With Google it isnt that simple.

[BlasterBates]

Facebook is overvalued by 30%

Analysis: Facebook IPO tests easy growth assumptions | Technology | Reuters

If you're going to invest in shares I would say Facebook should be bottom of the list. Plenty of gr8 shares out there, also some that not only pay regular dividends will probably go up a lot more than facebook with lower risk, ie more traditional companies like Telecoms, Engineering, Gas/Oil exploration, Mining etc.

Best to buy an Investor chronicle or news sheet with analyses and work out a strategy.

[jmo21]

Even their graffiti guy is going to become a millionaire link

[rambaugh]

It's valued between $80-$100 billion, so it could only be 5%. Zuckerburg has 24% of shares and over 50% of voting rights. I haven't read through the IPO doc so I don't know what they're planning to do with the money... anyone know?

I assume they'll use the money from the float to build up a warchest for future expansion and company takeovers. I believe that's exactly what Google did following their float.

Good time to be an employee at Facebook right now as judging by the hype they also stand to benefit as they will become overnight paper millionaires.

[beaker]

I think the IPO is supposed to be $5 billion, but again, not sure how much of the company are they planning to give away for that...

It's valued between $80-$100 billion, so it could only be 5%. Zuckerburg has 24% of shares and over 50% of voting rights. I haven't read through the IPO doc so I don't know what they're planning to do with the money... anyone know?

[yasockie]

Not sure if this is completely accurate but here it is anyway link

I think the IPO is supposed to be $5 billion, but again, not sure how much of the company are they planning to give away for that...

[ChimpMaster]

Have you used Facebook recently? It's utter rubbish now - yes it was fine a while back but it's going downhill fast and will no doubt be overtaken by something bigger, better and easier for the masses to get addicted to.

[jmo21]

No, the figures dont add up for me. I think I read $350m profit last year, $10bn IPO values the company at $100bn, thats a p/e ratio of about 30 - very expensive, all potential is already built into the price

Not sure if this is completely accurate but here it is anyway link

Facebook, just eight years old and started by Harvard University students, now has 845 million users and made a profit of $1bn last year.

<snip>

This included news that Facebook's net income in 2011 rose 65% to $1bn, off revenues of $3.71bn.

[TheFaQQer]

ITV did well on their friends reunited investment didn't they?

Almost as well as Rupert Murdoch did with MySpace.

[JoJoGabor]

No, the figures dont add up for me. I think I read $350m profit last year, $10bn IPO values the company at $100bn, thats a p/e ratio of about 30 - very expensive, all potential is already built into the price

[MarillionFan]

Nope. Massive hype will inflate the price before a dip in my opinion. Plus Zuck will still have overall control and states FB is for the good of the world not for the sake of a business. Not good for investors IMO.

WHS.

Flash in the pan, overpriced , good way to lose money(longterm).

[jmo21]

Here's the thread I started a wee while ago.

I asked a number of UK based trading companies and all of them said they were unable to trade in the FB IPO.

Has anyone else had any luck.

Lets not start with the investment advice again though

Edit: oops too late!

[badger7579]

Nope. Massive hype will inflate the price before a dip in my opinion. Plus Zuck will still have overall control and states FB is for the good of the world not for the sake of a business. Not good for investors IMO.

[BrilloPad]

ITV did well on their friends reunited investment didn't they?

[yasockie]

I know some of you have signed up for trading accounts to be able to buy Facebook shares.
Where did you open your account and will you be buying after all?