The Rise & Fall of Facebook

MapleOne

Worlds greatest Dad'n
Jul 19, 2010
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www.MapleOne.com
The rise of a company that technically only exists in cyberspace to a multi-billion dollar corporation is pretty impressive.

However, we have seen this before with MySpace and Yahoo

Is anyone here running to invest in Facebook after the stock decline?
 

EagleSmack

Hall of Fame Member
Feb 16, 2005
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Definitely an interesting stock to follow....

"It is pleasant, when the sea is high and the winds are dashing the waves about, to watch from the shores the struggles of another."
 

EagleSmack

Hall of Fame Member
Feb 16, 2005
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I followed the release with a little interest... For the life of me, I couldn't understand where their revenue streams would justify the capitalization that they had projected.

It just goes to show why many Facebook employees sold much of their stock the moment they could. I bet they are dumping more of it.
 

captain morgan

Hall of Fame Member
Mar 28, 2009
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A Mouse Once Bit My Sister
Same with Goldman Sachs (from what I heard)... Makes you wonder if it was/is a pump and dump arrangement.... But then again, I'll wager that it was bought up by a lot of institutional investors and by in large, they are not fooled that easily
 

EagleSmack

Hall of Fame Member
Feb 16, 2005
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They have to wait 6 months before selling. Only a select few, ie Zuckerberg, were allowed to sell right away.

Ah ok. Before it went public they were talking about the Facebook employees that were able to sell right away. I imagine it must have been the founders.
 

taxslave

Hall of Fame Member
Nov 25, 2008
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Facebook really doesn't have serious tangible assets. The whole thing is a leap of
faith for sure.

That was my take on it too. A lot of money for shares in a company that has no tangible assets, depends on selling advertising that most users don't read and a market that is so fickle they might loose their whole client base in a matter of days if something different comes along.
 

Bar Sinister

Executive Branch Member
Jan 17, 2010
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Can't tell with a tech stock. Google was asking something like $85 a share in its IPO. It is now trading at over $600. It is all based on how much advertising revenue can be generated and Google appears to do that quite well. If Facebook can maintain and expand its advertising links it could be a good buy.
 

Kreskin

Doctor of Thinkology
Feb 23, 2006
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Google has a P/E ratio of something like 12. Facebook something like 56, based on a 10 year annual growth rate of 24%. It doesn't seem to make much financial sense but who knows which way the wind will blow on a tech stock.