Facebook Stock?

[JForce]

I feel like all of this controversy is driving down the stock price. And at the same time its probably going to shoot back up once the financials are out there. The company is stupidly profitable, biggest expense is people and they are easily scaled back.

Profitable yes, but it's still so overvalued that it's a joke. Their stock price is so far beyond the actual profit its almost criminal - it just shows how far removed from reality the stock market actually is.

[Me]

I feel like all of this controversy is driving down the stock price. And at the same time its probably going to shoot back up once the financials are out there. The company is stupidly profitable, biggest expense is people and they are easily scaled back.

Profitable yes, but it's still so overvalued that it's a joke. Their stock price is so far beyond the actual profit its almost criminal - it just shows how far removed from reality the stock market actually is.

Nah, this was simple hype. I'd imagine the majority of people buying the shares were just regular people thinking facebook is big and big computer things make you rich so decided to buy the shares and get rich quick. I'd be surprised if many serious investors bought into it since the numbers just weren't there.

I mean, hell, look at page one with all the armchair stock-brokers who figured that out.

[Smuggo]

I feel like all of this controversy is driving down the stock price. And at the same time its probably going to shoot back up once the financials are out there. The company is stupidly profitable, biggest expense is people and they are easily scaled back.

Profitable yes, but it's still so overvalued that it's a joke. Their stock price is so far beyond the actual profit its almost criminal - it just shows how far removed from reality the stock market actually is.

Nah, this was simple hype. I'd imagine the majority of people buying the shares were just regular people thinking facebook is big and big computer things make you rich so decided to buy the shares and get rich quick. I'd be surprised if many serious investors bought into it since the numbers just weren't there.

I mean, hell, look at page one with all the armchair stock-brokers who figured that out.

You don't raise $10bn off retail investors pal. The majority of the free float will be held by institutional investors.

[Me]

I feel like all of this controversy is driving down the stock price. And at the same time its probably going to shoot back up once the financials are out there. The company is stupidly profitable, biggest expense is people and they are easily scaled back.

Profitable yes, but it's still so overvalued that it's a joke. Their stock price is so far beyond the actual profit its almost criminal - it just shows how far removed from reality the stock market actually is.

Nah, this was simple hype. I'd imagine the majority of people buying the shares were just regular people thinking facebook is big and big computer things make you rich so decided to buy the shares and get rich quick. I'd be surprised if many serious investors bought into it since the numbers just weren't there.

I mean, hell, look at page one with all the armchair stock-brokers who figured that out.

You don't raise $10bn off retail investors pal. The majority of the free float will be held by institutional investors.

Well then you've got a bunch of fund managers that suck at their job.

[Smuggo]

I feel like all of this controversy is driving down the stock price. And at the same time its probably going to shoot back up once the financials are out there. The company is stupidly profitable, biggest expense is people and they are easily scaled back.

Profitable yes, but it's still so overvalued that it's a joke. Their stock price is so far beyond the actual profit its almost criminal - it just shows how far removed from reality the stock market actually is.

Nah, this was simple hype. I'd imagine the majority of people buying the shares were just regular people thinking facebook is big and big computer things make you rich so decided to buy the shares and get rich quick. I'd be surprised if many serious investors bought into it since the numbers just weren't there.

I mean, hell, look at page one with all the armchair stock-brokers who figured that out.

You don't raise $10bn off retail investors pal. The majority of the free float will be held by institutional investors.

Well then you've got a bunch of fund managers that suck at their job.

Or their performance isn't generally measured over 4-day periods?

[Me]

I feel like all of this controversy is driving down the stock price. And at the same time its probably going to shoot back up once the financials are out there. The company is stupidly profitable, biggest expense is people and they are easily scaled back.

Profitable yes, but it's still so overvalued that it's a joke. Their stock price is so far beyond the actual profit its almost criminal - it just shows how far removed from reality the stock market actually is.

Nah, this was simple hype. I'd imagine the majority of people buying the shares were just regular people thinking facebook is big and big computer things make you rich so decided to buy the shares and get rich quick. I'd be surprised if many serious investors bought into it since the numbers just weren't there.

I mean, hell, look at page one with all the armchair stock-brokers who figured that out.

You don't raise $10bn off retail investors pal. The majority of the free float will be held by institutional investors.

Well then you've got a bunch of fund managers that suck at their job.

Or their performance isn't generally measured over 4-day periods?

Buy today instead of 4 days ago. +10% profit on the long term.

[Smuggo]

I feel like all of this controversy is driving down the stock price. And at the same time its probably going to shoot back up once the financials are out there. The company is stupidly profitable, biggest expense is people and they are easily scaled back.

Profitable yes, but it's still so overvalued that it's a joke. Their stock price is so far beyond the actual profit its almost criminal - it just shows how far removed from reality the stock market actually is.

Nah, this was simple hype. I'd imagine the majority of people buying the shares were just regular people thinking facebook is big and big computer things make you rich so decided to buy the shares and get rich quick. I'd be surprised if many serious investors bought into it since the numbers just weren't there.

I mean, hell, look at page one with all the armchair stock-brokers who figured that out.

You don't raise $10bn off retail investors pal. The majority of the free float will be held by institutional investors.

Well then you've got a bunch of fund managers that suck at their job.

Or their performance isn't generally measured over 4-day periods?

Buy today instead of 4 days ago. +10% profit on the long term.

On a small percentage of your overall portfolio. Fund management is based on large risk-weighted portfolios of different assets and the difference you are highlighting here is pretty meaningless in this context. Look at any other listed equity, and you will see it's not uncommon for firms to move around by +/- 10% over a few weeks for no particular reason at all and any serious investors is looking at an investment horizon of 5-10 years or more.

[Sponk]

You don't raise $10bn off retail investors pal. The majority of the free float will be held by institutional investors.

You really think institutional investors paid the same as everyone else?

It's an ultra-common tactic to arrange for cheap tranches of shares then dump them post-IPO, which is why Google did that reverse dutch auction thing to actually capture that money.

[Smuggo]

You don't raise $10bn off retail investors pal. The majority of the free float will be held by institutional investors.

You really think institutional investors paid the same as everyone else?

It's an ultra-common tactic to arrange for cheap tranches of shares then dump them post-IPO, which is why Google did that reverse dutch auction thing to actually capture that money.

Everyone else? You mean the meaningless puny percentile of retail investors?

[Don Pellegrino]

Considering the recent news about Facebook, this is not surprising at all:
http://www.forbes.com/sites/patrickh...b-becoming-bs/
http://techcrunch.com/2012/07/30/sta...ing-from-bots/

TL;DR: More people advertising on Facebook are reporting that most clicks (~80%) on Facebook ads and installs for their Facebook games seem to be fake because those clients are not downloading the content of the page and they don't even have valid browser signatures. Some organization did a test with blank ads and they were only 0.01% less clicked on than normal ads, but it isn't conclusive due to another test reporting 60% more traffic with a blank ad. In any case, after being publicly humiliated by GM for how ineffective their ads are, this is another crush for a company that needs credibility more than anything else at the moment. Their stock is also down to ~$21 from $28 just a few days ago.

[Krugerrand]

I think most of us saw this coming.

[marcus xero]

this guy didnt

nsfw

  Spoiler:

[Mendolorian Girl]

Am i right in thinking that this sort of scandal/news could have been much better dealt with if they weren't currently a public company? i.e. their stock couldn't go into meltdown so they could ride it out...?

[marcus xero]

when they were private no one gave a fuck.

[RazoR]

i'd rather buy stock in onebit

fyp

[Rudolf Miller]

Zynga is suffering as well.

Not a single person with a functioning brain is shocked

[Al Simmons]

It's a pretty good scam isn't it. Make some stupid internet company, everyone goes "omg it's the second coming of jesus" and you cash out your stocks to the tune of hundreds of millions before the stock tanks. Zuckerberg made a billion dollars selling some of his Facebook stocks before the IPO.

http://news.cnet.com/8301-1023_3-574...acebook-stock/

http://www.gamasutra.com/view/news/1..._implosion.php

[RazoR]

It's not like fecesbook's market value was low before this.

Oh wait, it's al simmons.

[Al Simmons]

Someone get me a Russian-English translator because I have no idea to what he is referring.

[Tellenta]

Am i right in thinking that this sort of scandal/news could have been much better dealt with if they weren't currently a public company? i.e. their stock couldn't go into meltdown so they could ride it out...?

Yes, except that if it was a privately held company the shares more or less stand for who owns the company. Someone correct me if I am wrong but the value of stock in a privately held company is by in large irrelevant.