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Facebook IPO Prices At $38/Share
Finally, we can move on:
- FACEBOOK SAYS 421.2 MLN SHARES PRICED AT $38-SHR
Now, all that Facebook needs are those elusive +/-25 billion users to "grow" into its "valuation." We only have four outstanding questions:
- What is Ben Bernanke's IPO allocation?
- Does the CIA use tax or cost basis accounting?
- When do the puts start trading?
- What is the fair value of Like relative to intrinsics and is Bruno Iksil long or short it?
Finally, from the inimmitable Andy Borowitz:
A Letter from Mark Zuckerberg
About Facebook’s IPO
MENLO PARK, CA (The Borowitz Report) – On the eve of Facebook’s IPO, Founder and CEO Mark Zuckerberg published the following letter to potential investors:
Dear Potential Investor:
For years, you’ve wasted your time on Facebook. Now here’s your chance to waste your money on it, too.
Tomorrow is Facebook’s IPO, and I know what some of you are thinking. How will Facebook be any different from the dot-com bubble of the early 2000’s?
For one thing, those bad dot-com stocks were all speculation and hype, and weren’t based on real businesses. Facebook, on the other hand, is based on a solid foundation of angry birds and imaginary sheep.
Second, Facebook is the most successful social network in the world, enabling millions to share information of no interest with people they barely know.
Third, every time someone clicks on a Facebook ad, Facebook makes money. And while no one has ever done this on purpose, millions have done it by mistake while drunk. We totally stole this idea from iTunes.
Finally, if you invest in Facebook, you’ll be far from alone. As a result of using Facebook for the past few years, over 900 million people in the world have suffered mild to moderate brain damage, impairing their ability to make reasoned judgments. These will be your fellow Facebook investors.
With your help, if all goes as planned tomorrow, Facebook’s IPO will net $100 billion. To put that number in context, it would take JP Morgan four or five trades to lose that much money.
One last thing: what will, I, Mark Zuckerberg, do with the $18 billion I’m expected to earn from Facebook’s IPO? Well, I’m considering buying Greece, but that would still leave me with $18 billion. LOL.
Friend me,
Mark
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Someone is going to become rich shorting this POS.
FuckBook will shit fan at $31 close tomorrow -- yes i am calling this turd!
Facebook IPO??? more like..failbook IPO
FACEBOOK, CREATED BY DOUCHEBAGS FOR DOUCHEBAGS, EXCLUSIVELY.
Zerohedge Comments, created by Tyler Durden for Douchebags who make categorical Douchebaggy statements.
My first price target is $100, followed by $200 shortly after. Buy while you can as this buying window will NOT last for long. FB is going to be the next AAPL, but not everybody will be smart enough to buy now while it's still cheap.
Last year Facebook had $3.8 billion in revenue, not profit, just revenue. We don’t know how profitable Facebook is because it’s a private company. Let’s say Facebook’s executive team is absolutely stellar and they have even better margins than Google with 27.5% (Google achieved 25.7% profit margin in 2011). That would mean they earned $1.045 billion in profit which would imply a P/E ratio of 95.7 and a return of only a little over 1% on your investment. That's a pretty bad investment which does not begin to keep pace with inflation.
But of course on Friday, there will be a mass IPO hysteria and all sorts of retards will bid the stock up to ridiculous levels, and yes, Facebook will reach and probably exceed that 100 billion valuation. Then I will wait impatiently for a week or two for people to write some puts. On a long enough timeline, I guarantee you, Facebook is a losing investment and I can’t wait to take the other side of that bet.
http://www.singledudetravel.com/2012/05/why-facebook-isnt-worth-100-bill...
P/E ratios? What do you think this is? A real market? pfssst
pets.com
Options start trading May 29. Plenty of time to raise cash for the Put of your life. Hopefully it trades LEAPS. I figure the July 2014 35's puts will be well in the money by then.
add all the hype of all the superbowls up and it still would not add up to how much this thing has been hyped...
5. When does the lock-up period end?
The last sucker, I mean investor, who buys this from a really really bright seller please turn off the IPad.
Cramer: Facebook Could Hit $70 On First Day
http://www.cnbc.com/id/47452321
For shits and giggles.
I bet if they ever do a Faceporn IPO they'd make some really obscene profits.
At this point we need some Chinese accounting firm to do an analysis of Facebook and publicly announce the company is only worth $4 a share. Why not? We do it to their IPOs.
Initial Public Offaling?
1. Facebook took $3.7 billion in revenue last year and producing $668 million in net profit off that income
2. 44 percent of Facebook’s revenue last year (or about $1.63 billion) came from outside the United States
3. Facebook's revenue per USA user (157 million users) is about $13.37 in 2011.
4. Facebook's revenue per Foreign user (733 million users) is about $2.21 in 2011.
5. Facebook's PROFIT per user in total per year is about $0.75.
6. Google produced an estimated $24 per user in 2011.
7. = Facebook has a long way to go in foreign markets and even if they reach parity with US market users they are not going to be make a lot of money.....tops is nowhere near the Apple and Google horde.
Where did you get these numbers?
Most of it came from:
http://www.digitaltrends.com/social-media/inside-facebook-what-sec-documents-reveal-about-the-social-networking-monolith/ which itself cites the SEC S-1 Document Facebook filed.
FACEBOOK REGISTRATION STATEMENT:
1. Page 50: the profit per user in USA vs foreign was just extrapolating the revenue and dividing by user counts.
"In 2011, we generated approximately 56% of our revenue from advertisers and Platform developers based in the United States" -- Ergo 44% overseas.
The Prospectus Summary states: "We had 845 million MAUs as of December 31, 2011"
Recently Google's DoubleClick estimates 890 million users.
Great thanks. So how did they get from $677 million there to the $1 billion net income for 2011 they're now claiming?
What I hate the most is the fact that CNBC was pumping this stock all day let alone all week. This is outrageous, they didn't put that much power into other stocks. I feel a 31 dollar a share day.
If you have not figured out by now CNBC is full of fiucktards, liars and propagandists and shut the fucking TeeVee off...
I can't help you...
"$1 billion was Facebook’s net income (read: profit) in 2011. This is pretty solid given growth from previous years: $229 million in 2009 and $606 million in 2010."
source: http://www.zdnet.com/blog/facebook/facebook-ipo-final-numbers/13257
My first price target is $2000, followed by $3000 shortly after...
Oooops. Sorry, I was talking about gold...
All I will say about Farcebook is... compare GOOGLE's valuation and revenues and then look at Farcebook...
Like Tyler said, unless every man woman in child in India, China, Africa, Mars and Jupiter start "signing up" this price is absurd as LNKD, JCP, NFLX and YELP's business models...
I just think the 99X P/E is a bit rich. The company itself is actually making profits; with Dot Com there were companies that didn't even have revenues, let alone profits, going for IPO. I am sure it will settle down to a much lower share price within a few months, barring the requested $4 trillion QE3.
MillionDollarBonus said:
"FB is going to be the next AAPL"
Reminders:
MySpace
AOL
Netscape
HP
Compaq
Enron
...
Does GM also fit in with this rogues gallery?
I think they're big in China.
I've traded AAPL after I owned a few apple products.
I've traded GOOG and I use it daily.
I don't use Facebook. I kicked the tires but it seems like a MIP burner to me. I'll pass...
Ummm... you look a little bit like Jamie Dimon on steroids (or crack).
learn to use it
douchebagz get laid
Dividends will be paid in "Likes" and "friend requests."
somehow i get spam from a company called 'fuckbook' (only spam i look at)
when's their IPO?
Now those friend requests would be worth something...
I would buy into the redtube or youporn ipo in a heartbeat.
http://www.pcworld.com/article/190650/narus_develops_a_scary_sleuth_for_social_media.html
Narus is developing a new technology that sleuths through billions of pieces of data on social networks and Internet services and connects the dots.
The new program, code-named Hone, is designed to give intelligence and law enforcement agencies a leg up on criminals who are now operating anonymously on the Internet.
http://www.wired.com/epicenter/tag/narus/
http://www.facebook.com/note.php?note_id=339793017605
http://internetsgovernance.blogspot.com/2011/02/egypt-crisis-egypt-is-burning-and.html
http://ccicada.rutgers.edu/Workshops/ResearchRetreat/2010.03/Bhagat_hone-mar8.pdf
What kind of beat?
Don't feel bad. I get spam for Ron Jeremys patented peter pumper
Hey, you're Dutch right? Then you'll remember World Online which was also around the stock market top.
And tulips might be a fitting analog.
Not before hitting $60 at least.
It'll finally open for secondary trading at $40+, then will explode higher based on shitty retail orders.
Revisit this post tomorrow, just watch. The big boys are supporting this to no-end and will be scooping up shares the second it gets close to the offered price..
I guess that means the markets find a bottom tomorrow...thank God for fundamentals
/sarc
good call
Put me down for $25, and low as $19. 421 million shares? $25/share still puts them at a valuation close to $100 billion if they sell all 421 shares (which they won't at $38).
Oh it's shit alright. Like BATS - shit.
I give it 100 milliseconds beofre it hits actual zero.
An awful lot of you don't get it. FB is neither a fad nor a joke. It is destructing social and the genie is out of the bottle. But, you'll see for yourselves soon enough. If you're not using it regularly you just won't get it. GM's problem. Ford doesn't have the same problem. The point is targeting via data aggregation, not pablum adverts for any 'ol eyeballs.
Discussion to be continued.
vast--fuck book is a name already taken by another company
google it
Depends on whether or not they get a multi-billion dollar contract with the NSA...
well, it seems like they ARE a multi-billion dollar contract with the NSA...
Loved that line...
Shit, who needs Iran-Contra to fund Black-Ops.
Goldman already did by selling $1B worth today...................but just wait until "research" is allowed to rate it.
WE COMMENCE FACEBOOK COVERAGE WITH A CONVICTION BUY RATING.................
I wonder if, one of these days, they will commence the day with an actual conviction...
indictments first, please. this is a civilized country with a rule of law
If it was going to be such a successful IPO then why did Goldman Sell 1 Billion worth of the stock? The are not usually stupid.
Plus, with 24 - 7 coverage by CNBC to create hype. Something stinks.
Borowitz got the prize today:
http://www.borowitzreport.com/2012/05/17/a-letter-from-mark-zuckerberg/
Is that the one printed above?
I am so fucking sick of hearing about this Facebook IPO. Somebody make it stop ...
They are using it to hold the Market and Tech up for many Institutions to sell.
Only works if the "retail" investor buys in.
Be interesting to see just how dumb the dumb money is these days, or if it is starting to wise up.
Might just end up being a bunch of algo's playing with themselves...
Wouldn't that be nice. :-)
Exactly. What is a couple of servers in a shithole strip mall in Cali worth these days? If I could I would short the hell out of this stock two days going public. What a bunch of suckers.
Actually I think it's a $750 million data center in Norway located near a hydro dam. Maybe they'll use some of the IPO cash to acquire the hydro dam, so they don't have to pay for the electricity at all.
Everyone wants to short this. Seller beware.
You guys should be selling all of your gold to buy FB shares with market orders at open tomorrow!
Will FB do a BATS? That would be cool.
FUCK Facebook! At least you can hold an Apple product. Google to find porn. WTF can Facebook do for me? Enough said.
Two words: Muddy Waters
Facebook will be the final slaughter of the Mass's wealth.
"LIKE"
25 billion users ? From where, Mars ?
When you say something Facebook doesn't like, or post pictures of hot / nude women... or you are a part of "anonymous" they cancel your account.
I know people with like 20 back up accounts set up. Just saying, it looks good on paper... and as long as fools will part with their fiat for ipo paper... who really cares? :)
Wait. I can get them to cancel my account by posting pics of nude women? COOL! I've been trying to get my account deleted for months.
From out of Barnank's ass and/or helicopter and the CIA's victims that are dead but will have their SS #'s brought back to life to flaot this turd......
probably lemmings...
How many shares did Mossad get?
yeah it's easy to see why so many want their lives to be memorialized in the CIA Factbook, er, Facebook..."b-b-but they said we'd be famous..."
Now we understood, people sold crap to buy another junk.
I dont think they can find enough muppets.
What if the Etrade babies are feeling sneaky and looking to short tomorrow?
If the greater fools wise up this game is over.
In your face, HFT. Why sell 99.999995 cents for a dollar when you can sell 0.000005 cents for $38!
400 million shares? Bruno, you'd better run.
Short that shit.
38 bucks for failbook.
I haven't spent a single penny using facebook.
I used adblock and ghostery, so the ad's are pretty much nonexistent for me.
How can they make money when their advertisers are pulling out like GI's in Bangcock when they realize that's NOT a girl they hooked up with?
Just curious...
http://www.youtube.com/watch?v=dDIZTmH6Qsw
I still remember the the Master Chief's class on how to determine gender by looking at the face and neck before we pulled into any Asian port and Hawaii.
How about looking at the dick, did that help?
He did say "look at the face and neck".
“You know what the trouble is Brucie? We used to make shit in this country, build shit. Now, we just put our hand in the next guy’s pocket.” -- Frank Sobotka
For comparison:
Alcoa has a $9 billion market cap, 1 billion shares outstanding, with $6 billion in quarterly revenues, consistently. It closed today at $8.5 and pays a 3 cent quarterly dividend. They make tangible product.
Facebook has a $100 billion market cap, 3 billion shares outstanding, with $4 billion in revenue, last year. It will IPO tomorrow at $38. It has one billion active users.
Every single person on the planet breathes air. It is free. No company has yet been able to monetize its use.
Every single person in the industrialized Western world uses aluminum. See above.
Lot of new millionaires going to be created shorting this to be sent into exile when they leave the country to flee the taxation of their new found wealth.
Ticker name = ROBD.
welcome facebook plenty of interest after today
So after a years worth of pumping this Facebook crap then what? Market collapse as there is nothing to look forward to?
Buy some FAZ calls....
Fools.
38.00 to 60.00
back down to 25.00
Ride that first day of trade then I guess, cash cow.
Plenty of fools will rush in... there used to be a saying about that. I think even old Buffet said something about when the market was greedy to be cautious. Lots of people are going to lose their stock market cherries tomorrow. I have a feeling it will be a bloody mess, when all is said and done.
Anyone care for some Groupon or Linkdin stock? :P
Hit it & quit it.
Or maybe, like it & spike it.
Exactly, this bitch is going to go up, then go down, then up again, then down...move steady with in a range and die IMHO
so... STFH, short the fucking hike...
So what about that Spanish bank downgrade that was supposed to happen???
Doesn't hoodie boy control 57% no matter what? Pfft. Fuck that.
exactly
Yeah, random $1 billion purchase of Instagram without consulting anyone. Talk about due diligence....
Suckerberg thinking "Hmmm Instagram is mobile with 30 million users... I have nearly 900 million users, they might not use facebook..." I need to get them.... What should I offer? Hmm Goldman Saches values us near 20, no 50, err 100 bazillion dollars. I think 1% for a mobile app will do. I'll offer $1 bazillion, I hope they take it...."
18% but who's counting?
Is the NBG long FB?
Can you believe the CNBC spin. They have altered their homepage just to hype FB. What a bunch of cheap ass punks that'd sell their grandmother for a nickel.
"he much-hyped Facebook IPO priced at the high end of expectations, setting the stage for what is expected to be a history-making day on Wall Street."
Diversion to get the sheep to not realize how many down days we have had in the past 3 weeks.
Looks like CNBC is getting paid by Wall St per word. On their front page I can count the F-word 30 times.
my computer cd-rom just opened up...and there was a $100 dollar bill waiting for me!
I find them in the printer.........
Was there an AOL disk in it?
100 free hours!
It is The Ben Bernank fiat so it is ****ing worthless.
The only thing you need to know about this is 57% of the offering is from existing shareholders. Can you say "wealth transfer?"
Bernankes take will be nothing compared to that ho nancy pelosi's.
If we all do our patriotic duty of creating 100 facebook accounts per citizen, we can save the economy and create high paying jobs.
Bubblebook
The greatest pump and dump since GM, which was not so long ago, just where you want to be, on the other side of the trade from Goldman Sachs, Mark Zuckerberg, and Peter Thiel. Stupidity is infinite, come hither lemmings.
I am glad that the ususal gang will get rich on this hyped IPO. They really deserve it after all.
Meanwhile, the rest of America is getting crushed under the weight of unliimited debt for all.
Facebook CDS priced at?
I'd love to see Suckerberg with his famous hoodie on living in a cardboard box someday. That prick is selling everyones privacy for his own personal gain. He can eat shit and die for all I care.
I would love to see this IPO do badly so I can see the Hoodieboy cry for his mommy.
What, with $15bil in the bank? You think he's going to be living in her basement?
No, but it would still be fun to see the stock tank. It makes me puke when I see Hoodieboy's picture on almost every financial website I frequent.
FB is a fad just like MySpace. It appeals mostly to teenage girls and homosexual men.
With a major recession coming, what else will people have to do but spend time on Facebook? BULLISH!
Please like my cardboard box; it is on a nice corner and I cut out a little window I can pee out of.
Mind if I borrow your car DC outlet for an hour or two to charge my iPad?
I think privacy laws will kill the stock. If Facebook is not able to share individuals information it will be a death nell. That is why Goldman and others hurried the Ipo and are cashing out of their position.
Also, a lot of people closed down their account because of spying. When people realized that the IRS, Divorse Attorneys, Employers, ect. could see their page, they do not want anything to do with it.
And now facial recognition technology using Facebook to profile people. Not good.
Plus, you know there is trouble when they offed 25% to Retail. If they really thought it would be successfull they would not share it with Retail Buyers. So, as they say when Retail gets in is it the top?
Yeah.
I think the underwriters are shitting bricks right now.
Are they going to be able to flip those Flopbook shares
before it all comes down ?
Who to,Algos ?
phrase is death knell <-- note the K
What members of congress have been give inside track on this IPO?
This is a hail mary pass by the street in an effort to get retail excited (greed/jealousy-driven) about equities again. As such I expect them to do everything in their power (within the spirit of regulations and laws or otherwise) to keep this thing moving higher and higher.
Neighbor A (drooling jealously at Neighbor B's new car): Hey, when did'ya get that beauty?
Neighbor B: Picked it up last week; I made some decent money in the market and thought I should reward myself.
A: REALLY?!? I swore off the market after 2009. What did you play???
B: My broker got me a piece of the Facebook IPO, I did quite well.
A: (clenches fists as a rush of greed and jealously begins to overcome him) Nice! I..I.. I heard about that on the news. Who's your broker? Anything else coming down the pipe worth playing?
B: Well, there is this upcoming IPO that he says should...
A: Gimme his number, I want in!!!
"Now here’s your chance to waste your money on it, too."
Yeah careful what you say Mark; money will be wasted by all those investors when Facebook goes below the initial 38$ share price and stays like that for a looooong time...
FB price guide:
Today - $38
At tomorrow's close - $50
One week - Grouponed
I do not like a 28 year old going on Buying sprees without even checking with the Board. Like his recent purchase for a couple of Billion. With his new wealth he could start to feel like he can do no wrong and make bad purchases and end up Bankrupting the Company. Anyone remember AOL?
I do not think he is mature enough to be running that size Company alone with just his say so. Remember all shares do not have voting power.
When they finish the "pump & dump" on this pig, it may very well mark the end of an era - which incidentally began with the Netscape IPO in 1995. Any of you out there old enough to remember that one? It marked the beginning of "irrational exuberance", as someone called it.
i am getting down on one share @ $38 and then moving out of the country
No FB puts. But, what would be good puts to play tomorrow that would mirror FB's all day slide (IMO). ZNGA?
So I guess this will make Mark Zuckerberg the richest CIA asset in history.
That would still be Bill Gates. MS DOS coding records in perpetuity every keystroke you ever made with a time/date stamp attached.
What happens if they don't sell all the shares?
Life as we know it ends.
I want $38 for every visit to my Farcebook page; why not?
Now, all that Facebook needs are those elusive +/-25 billion users thats $64 a user now pay up.
Lots of people are hurting. Emphasizing how a 28 y/o can generate 18 billion cash in his short life time on a popular web based meeting place is mind boggling to most and very frustrating to many.
There will be envy and fury coming down the pike. Just out of spite, I can see alot of angry real people closing their real accounts and swearing to never touch anything related to FB again. Everyone knows FB is robbing them of good quality time with friends and family and now they're learning that their time wasting is making one 28 y/o (and many others) ultra filthy rich?
Zuckerberg's new wealth and FB IPO could be the spark that lights the fuse.
FUCK ZUCK
Playing devil's advocate here on walkure's post. Yes, many people are hurting. But its their apathy that led to this monster being created.
if they weren't on it, it wouldn't be worth as much.
lol
Facebook IPO brings us another 6 months worth of hilarious ZH zingers. FightBook!
What is the fair value of Like relative to intrinsics
I think FB should be priced at $1,000,000,000,000 per share. $38 is for pussies.
Zimbabwe baby!!!!!!!!!!!!!!!!!!!
What's the symbol on this turd?
"FB"
But "TURD" would work too...