What the Facebook? Shares of the Popular Social Playground Slide Below IPO Price

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bigrigross

If you bought stock into this company, you deserve to lose money. They have no real tangible product other than your information which I am pretty sure that they sold off awhile ago. They have no way to sustain themselves as a company unlike Microsoft or Intel. We all know what happened to Myspace. No one ever thought that would go under. They priced this IPO to make the initial money and now all the dumb people who bought it are regretting their decisions and facebook is now swimming in even more cash. Its like dating a hot girl. Sure she is hot now, but she eventually depreciates into a slab of hard leather with gray hair and moles coming out of the kahuzzle.

Just my two cents....

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eday_2010

It was only Day Two of the stock being available. Everyone is overreacting a bit. That's why your thoughts are only worth two cents.

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bigrigross

Sorry, but we all seen how the internet stock crash of the 90's went. This is a very poor choice of investment. Thus why regular stock traders will not buy it and most investment agencies will advise you against getting stock in this kind of company since their is limited growth to be had. Learn economics and specifically about the stock trade, then respond to me.

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poee

I'm sure any girl would feel lucky to land a class act like you.

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bigrigross

I know my wife feels that way. Thank you for playing.

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poee

You're welcome!

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ApathyCurve

It didn't "sputter," it did exactly what it was supposed to do: earn lots of money for those selling shares. In fact, it was brilliantly executed, as they set the price at the absolute maximum at which the market would buy the offered volume. Creative over-valuation is an art.

As for all you people who bought the stock, you don't make money on a properly-executed IPO unless you find a trader willing to short it for you, which I doubt happened with the rapid plummet. If you're long at the max valuation, just hold it and hope for the split, (buying cash on an IPO is exceptionally stupid, BTW).

Oh, the stock will go up eventually. Maybe. If they can establish a sell-per ratio in their advertising model that long-term investors will believe... Let's just say I won't be adding Facebook shares to my portfolio any time in the near future.

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poee

Thanks for the insight on IPOs, AC. But does that mean that the Google IPO was not "properly executed" since the people who bought into it made LOTS of money (without shorting) right from day one?

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richeemxx

That depends on the definition of "properly executed." FB's IPO was executed in the best interest of the company and really was not about building an investor base. IMO Google, Yahoo et al. executed their IPOs slightly different. Both made tons of money for "most" of the people involved, the difference being Google and Yahoo decide to be investor friendly and let the chips fall where they may. They knew their stocks would end up since the market was extremely different at the time.

FB is entering a slugish market and knew they were an over-valuated company so they set their IPO as high as they thought they could get it and let their investors make their money while leaving the public buyers out cold.

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bpstone

Facebook does not seem like a wise investment to me. I remember when people said it would go nowhere while just about everyone was still on MySpace. Sooner or later another top dog is going to come along.

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bling581

I agree, but you have to admit that Facebook is quite a bit more popular than MySpace ever was. I have no doubt that it will eventually fade in the wind, but I have a feeling it's going to be a while until it happens.

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praack

not actually surprising for a net IPO- this was overvalued at the outset.

but the worst thingthat could happen is if FCC rules change to make it "easier" for these type of IPO's to retain thier percieved value once launched.

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TechLarry

Wow, the bust is happening sooner than expected :)

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CaptainFabulous

HAHAHAHAHA suckers...

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LatiosXT

What, people were actually expecting a profit on a service that's more or less saturated?

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tekknyne

This website where I just poke around from time to time isn't worth 100 million? *gasp*

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hades_2100

*billion

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