$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 …
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.
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.
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.
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.
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?
“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.
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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