Facebook IPO

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Grahambo

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Here was a problem with Facebook trading (one of many I'm sure), what was the future of Facebook? What could they possibly do in the future that would enhance the type of company they already are? Buy instagram? (Rhetorical question)

Point is, when you invest in a company, you invest in the future of that company. You don't invest in their past or what they are doing today (unless you are a day trader), you invest on what they are planning to do in the future. Facebook has no future, it never did. It is already dying slowly and will go the way of MySpace (just not as quickly).

My own personal two cents anyway.
 
G

Grahambo

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Let us not forget the investigation that will be taking place with the IPO.
 

Downinthebend

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Here was a problem with Facebook trading (one of many I'm sure), what was the future of Facebook? What could they possibly do in the future that would enhance the type of company they already are? Buy instagram? (Rhetorical question)

Point is, when you invest in a company, you invest in the future of that company. You don't invest in their past or what they are doing today (unless you are a day trader), you invest on what they are planning to do in the future. Facebook has no future, it never did. It is already dying slowly and will go the way of MySpace (just not as quickly).

My own personal two cents anyway.

Why do you think facebook will die away? Its strongly ingrained in most social communities (especially youth ones) and there is a strong social incentive to it.
 

phork

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Something cooler will come along, ask MySpace how it goes.
 

nvirish

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You buy stocks on fundamentals, current revenues and revenue projections. They lost GM's business and mobile advertising is not as lucrative as basic display. The downturn in the stock should be of no shock to anyone. Zuckenburg even dump a large amount of his shares at $41-$38 a share.
 

woolybug25

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Why do you think facebook will die away? Its strongly ingrained in most social communities (especially youth ones) and there is a strong social incentive to it.

Everything in this world (even you and I, my friend) are slowly dying. For some things, it takes a while, for some others it may not. The one thing we all have in common though, is that we also all have a peak in our life cycle. Do you believe that Facebook's peak is yet to come, or do you think it's happened already?

The question you have to ask yourself is what has made Facebook rise? Will it continue to do so? Is it's business model sustainable forever? Of course not, no business model is.

That being said, I agree with with Grahambo on this. If you watched the "Social Network" you will remember that Zuckerburg was adamantly against advertising, he said the value of Facebook was that it was "cool". He was totally right on that and he has made billions by having the "coolest" internet craze of possibly all time.

But what now? Their future revenue growth will be based in advertising and pay-per-click. They are sacrificing what makes them cool to cash out. Facebook (again, in my opinion) has peaked in it's business' life cycle. I don't think that it will be a steady drop off until it's death, but it will die.

Page me on my beeper if you want more info on integrated technology in our lives. I cant live without that damn beeper.
 

phork

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Everything in this world (even you and I, my friend) are slowly dying. For some things, it takes a while, for some others it may not. The one thing we all have in common though, is that we also all have a peak in our life cycle. Do you believe that Facebook's peak is yet to come, or do you think it's happened already?

The question you have to ask yourself is what has made Facebook rise? Will it continue to do so? Is it's business model sustainable forever? Of course not, no business model is.

That being said, I agree with with Grahambo on this. If you watched the "Social Network" you will remember that Zuckerburg was adamantly against advertising, he said the value of Facebook was that it was "cool". He was totally right on that and he has made billions by having the "coolest" internet craze of possibly all time.

But what now? Their future revenue growth will be based in advertising and pay-per-click. They are sacrificing what makes them cool to cash out. Facebook (again, in my opinion) has peaked in it's business' life cycle. I don't think that it will be a steady drop off until it's death, but it will die.

Page me on my beeper if you want more info on integrated technology in our lives. I cant live without that damn beeper.

And then came Firefox (and Chrome, Opera etc) with adblock.

(Sad Trombone)
 
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