The true price
When they get to $0.01 then give me a bell.
Facebook's stock tumbled below its initial public offering valuation to $37.46 per share in pre-trading figures on Wall Street this morning. Although technical problems at Nasdaq delayed the IPO, Mark Zuckerberg's web firm eventually floated last Friday, valued at $104bn with an opening price of $38. The dominant social network …
When they get to $0.01 then give me a bell.
If it gets to $0.01 we'll be told that it was our pension fund money that was "invested" in it.
It's all down to their tangible assets, but what do they have except server space?
The bubble burst once it may do so again, but why oh why to people forget so easily?
Is there anyone who didn't see that happening? Admittedly, it's happened sooner than I thought, I figured the bubble would last for a few weeks at least.
That is all
There was a mad dash by people hoping to buy up shares purely to quickly re-sell and make a killing. Basically the ticket touts of the financial world. This has pushed the price of Facebook up to levels that are just not sustainable.
It looks like many of the initial investors will lose out; I could chuckle at their distress, (OK, maybe I will) but I also worry that this will result in the media declaring another "dot com bubble" and predicting anotehr crash. This could then become a self fulfilling prophecy as others over react.
The problem is that we all have pensions, savings etc. that are affected by the twerps who make these poor decisions.
Everyone knew that the IPO would be skewed by FaceBitches wanting to buy a bit of history. These people buy based on emotion and wanting to score Likes for telling their friends about the purchase.
Then there were a bunch of speculators hoping to cash in on the irrational actions of FaceBitches.
What now? Likely the emotions will dissipate. People will find a wierd looking bit of paper in their hands and start wondering what it might really be worth. That is likely going to take them south.
I want out.
how many of our big corporate investors (pensions, savings) have bought the Zuckerboy Kool-Aid, and splurged our money on this ?
Is there a German word about "bitterly taking pleasure in others misfortunes" ?
Backpfeifengesicht. Oh hang on, that's just Zuckerberg.
Pensions and funds are not normally looking for high risk and any new IPO is high-risk.
Schadenfreude! One of my all time favorite words.
I am guessing the real current value is probably $10/share or less. Maybe under $5.
"Pensions and funds are not normally looking for high risk "
True - but they often buy shares in those institutions suchs as investment banks, funds etc that DO buy the more high risk stuff. The whole financial market is still very incestuous, with all of the various institutions buying little chunks of each other. This is why things got so sticky a few years ago; and they haven't learned anything from the problems that they had then.
I said *bitter* pleasure in others misfortunes. My knowledge of German is limited to say the least, but I suspect it would be another word tacked onto Schadenfreude ....
Yes, they're nothing like those fools who invested other people's money in sub-prime mortgage derivatives... anyway everyone knows that lightning doesn't strike twice...
Fact is that many pension funds are based on a calculation of 8 % returns from bonds, cash and equities. With "safe" US or German bonds paying less than 2 % this means piling into equities and derivatives in search of returns.
This is all going to end in tears. Our tears.
Vass ist dies "bitter" of vitch You speak? Schadenfreude ist an Emotionalstate, and Ich understand das dies "bitter" ist another Emotionalstate, aber zat goes not zogether. Nicht two Emotionalstates at ze zame Time, das ist against ze Rules. Ordnung muss sein, und two Emotionalstates gemixed ist not Ordnung. Also, Schadenfreude it is.
"Is there a German word about "bitterly taking pleasure in others misfortunes?"
I would suggest "hämische Schadenfreude", with hämisch meaning something like vicious. Though I would say that schadenfreude implies the 'bitterly' part. Just my two Pfennige.
I legitmately laughed out loud. Drew wierd looks.
Thank you. :)
"A face that needs to be punched"
Excellent word! Thank you.
Mark had to sell some shares to pay for the wedding,
Said - I BOUGHT A COUPLE THOUSAND SHARES AT 375 HAHAHAHAHAH TOP THAT
You still laughing?
I dunno if he's laughing but I am absolutely peeing myself - this post has made my day!
So FB has dropped around 3% from an over-hyped opener. This is news? Really?
Are we going to get El Reg stories every time the FB share fluctuates?
Give me a call when some massive pump&dump/naked short bends Zucker over a barrel and has its wicked way with him.
The "slight" problem with your post is that the AVERAGE price of an IPO goes UP by 32% at the close of its first day of trading...Farcebook HAD TO BE PROPPED UP by its underwriters, just to stay above USD$38.00...barely.
And they had to buy MILLIONS of shares just to do so.
Really... the guy had probably taken billions in cash already - so basically he's set for life in a lifestyle you could probably only dream about as you work your 9 to 5. Now who is shafted??
3% before the market opened. 8.5% 5min later.
Make a quick buck and get the f**k out of here.
A resumé of todays stock market.
"You swapped the cow for a handful of WHAT?"
Yeah, but that particular investment did eventually pay off as I recall, albeit only after a stiff climb and a few life-threatening situations endured by the investor.
Investing in Facebook on the other hand...
The real story here is the % the banks bought. Apparently 86% were bought by 5 key banks.
New banking crisis ahoy!
Well, why wouldn't they -- things go their way and the bankers get millions in bonuses, things go wrong and the taxpayer bails them out and the bankers get millions in bonuses.
"The real story here is the % the banks bought. Apparently 86% were bought by 5 key banks."
Oh please, no. PLEASE tell me this isn't true. The banks, whose business is managing money and who have whole departments dedicated to analysing the stock markets... the can't not have seen coming what most of us all predicted.... Can they?
As I understand it (I welcome correction by the knowledgeable), the underwriters (not 5 random banks) had a large fund that they used to prop up the price by buying at $38, and the amount of that fund they used was subtracted from the amount they owed FB. It seems to me they were just 'buying' from themselves and other insiders, and every share accounted that way was a share that wasn't flogged onto a retail rube at inflated price, so okay by me.
What did people think would happen?
It was always a overinflated IPO. The alarm bells should have gone off on all the silly press releases in the run up, trying to convince people Facebook had long-term legs and Google was dead in the water.
Really people's stupidity stuns me sometimes. have they not heard of the dot com bubble?
In the .com bubble prices went high at IPO and then later all collapsed. Collapsing at IPO is different.
Or "Ha, ha!" depending on which side of the buying fence you sit.
Bloody 'ell I looked away for 30s and suddenly it's $34
$33.64 & dropping.............$33.34............
Can anyone else hear a funny gurgling noise right now?
Maybe they were greedy - they kept upping the IPO price right up to the launch and surprise, surprise people are finding it a bit too rich and the shares were bought by the underwriters instead.
Makes Apple shares look positively cheap. Facebook have about a billion users and still make very little money (relatively) - Apple only have about 10% of the PC and phone market - so plenty of room to grow. FB are trading on a massive multiple of profits compared to Apple.
... going down
Beats watching Corronation Street.
that means we'll have to subsidise the banks again.
I reckon for every £1 in my pension fund they will piss £5 up saving it over the next ten years and tell me I have to feel good about it.
Just looked and facebook is at: $ 33.4454 -4.7864 -12.52%
IPO on Friday @ $38.00...High today of $36.66...Low today of $33.00...hovering around $34.00.
Nice 10%+ DROP in your investment kids.