back to article $US38 share price values Facebook at US$104b

Facebook has decided it is worth US$104b, valuing each of the shares that will go on sale early Friday US time at US$38. The price means the company expects to raise US$18.4 billion or so, a lazy billion or so behind the biggest first-day fund-raiser of all time, Visa. It also means, if we round Facebook's member numbers down to …

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Anonymous Coward

Wow

That's almost half a Microsoft

: /

Well, more like 40% but still... WTF

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Re: Wow

And more than Amazon.

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Silver badge

Price??

Is it just me or does anyone else want to sell Facebook at $100 short. Then again, it will inflate the home prices around here (Sillycon Valley, northern half) and raise the value of the house I'm in. As for me, I'll leave it to those with less brains then me to squander the $$$.

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Stop

fools are easily parted from their money it seems, (we'll found out soon enough)

...if only those same people weren't in charge of our pension funds & investments, I wouldnt care about otherwise, but it seems we havent we learned anything from the banking/financial crisis ....

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Anonymous Coward

Fools

You lot are the fools. You're all just jealous that you didn't get in there early......

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FAIL

i predict...

the same bubble that bitcoins saw

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Point of information

That €8.2e12 figure is the amount owed by countries that adopted the € as their currency, and so excludes UK and most of Scandinavia.

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g e
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Meh

Not buying shares but

I might open a site selling second hand shirts, one previous bubble investor owner.

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Devil

LOL

Just LOL.

Anybody here reckon the share price will be the same or higher a year from now, heck even month?

Also anybody know anyone who is intent in purchasing these shares?

Fair play to Zucker for outsmarting the banks.

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Anonymous Coward

Re: LOL

Fair play to Zucker for outsmarting the banks.

I think this trade is like art - it is worth what an idiot/fool/banker/(etc) is willing to pay for it. You now have AGAIN something that is based primarily on air (paying $115/user is insane) with nothing to secure the value against than what a hoodie-wearing Asperger's sufferer comes up with next. It's a sort of Internet-based subprime, where you know the value of your investment can only ever go down.

Zucker isn't outsmarting the banks, he's robbing the ignorant blind. And guess who has to pay the price when this goes the way it will inevitably go? Yes, t's you. Your tax money.

If the recent JP Morgan events haven't taught people anything I suspect there is simply no rescue possible and we're all royally screwed.

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Re: LOL

The tax money is the real issue here. If it wasn't for that, the idea would be to avoid the shoddy investment banks. However, since the money is guaranteed by the gub'mint, the risk can be taken with no fear for the loss.

Unless you mean pension funds, which shouldn't be insured for $100k anyhow.

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FAIL

Anyone who thinks FB is worth $1,000,000 should...

have all their money placed in a big mulcher and used for compost, as they clearly have no idea how to handle it themselves.

It seems it's not enough to have the Web 2.0. Now we need the .com bubble 2.0

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Stop

so why ??

if most of the shares have been sold befor trading begins is this just another way to rob the poor ??

first week they will sell for $38 after a month and the rich making there money .. they will drop to £18 ...

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A very good comment: FB is a Ponzi scheme

From what I've seen so far, it's a bit like the dot con boom is back: it will only run for as long as it finds new victims, sorry, users/advertisers to sign up:

http://www.forbes.com/sites/ryanholiday/2012/05/17/why-i-lost-my-faith-in-facebook-advertising/2/

It seems to agree with my own feelings about the value of FB: it's "make your money new before it falls apart" style marketing, and again the investors are led to hold the can afterwards.

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Valuation

On a PE ratio this values Facebook at 107x earnings. Which for a company that has admitted it has serious difficulty turning users into revenue is simply insane.

For a comparison, Apple trades about 13x and Google about 19x. How anyone can think Facebook is worth it is beyond me.

Yet the shares will probably end the day at least 50% higher due to demand of the stupid. One WSJ poll had them expected to end at > $200. Where they'll be trading in 12 months time is anyone's guess.

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Anonymous Coward

Another bubble ripe for bursting.

Facebook is no way worth that.

This is just another bubble ready to burst. Nobody has any clue what facebook is really worth in cash terms like so many of the .com busts of that era.

Those investors will spend top dollar to buy this stuff only to lose it when the share price collapses, then what? Will we have to bail out another load of investment banks for making bad investments?

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Overstating the obvious..

"Share values may go down as well as up" is overstating things in this case. "Share values may go down" is where that statement should end..

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from Fred Flinstones link...

“Goldman Sachs will sell as much as 50%, up from 23% previously. Tiger Global will sell up to 50% of its stake. Previously it planned to sell 7%.”

Some sheppards looking for sheeple to fleece?

Wow, is wild how they just never stop screwing people, and how the US system is so obviously corrupt to let this happen over and over and over and over again. I guess we will have to all wait and see, seems like a bubble to me, and Mark and his pals will likely walk off with a lot of people's hard earned money.

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Anonymous Coward

Investment and gambling

Money can be made on the IPO whether long term trend is up or down. Thats why this kind of deal appeals to gamblers who will make some excuse if lose or brag if they get lucky. At first glance whole thing looks like an exit strategy for Zuck, G-S et al and it is to be hoped that pension funds and others playing games with other peoples money will stay well clear of thinking of this as a possibly viable long term investment.

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Flame

And the KLF

only managed to burn a million quid.

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