By pricing the IPO high to take advantage of the hype around the companies IPO, the IPO was priced very high. By shutting of individual small time investors, the company made sure that they dont come back crying to open any investigation when the stock price falls. Now, the company got all the money, but the big investors were the one who lost
right ipo price should have been USD 19. EVERY body was in a hurry to scalp profit.. if promoter suckerberg sales within half an hour.. it s nothing better than sks micro finance--- the promoter AKULAdid not have any stake during sks micro fin IPO SECRETLY SOLD TO SINGAPORE BEFORE IPO AND resold in open market clandestinely -- THAT has LOST 80% As ON DATE.. face book is sks micro finance of NASDAQ.
You can expect heavy litigation cost for these guys-the way it is going-just one has to start and there will be a plethura to follow-Well but it will hang around-Cant compare with Amazon or Google or Apple
when Amazon went public, its share was dollar 18 a piece. The prices tumbled and did not return to the dollar 18 mark for more than a year after IPO. Today (after nearly 10 years)Amazon's shares sell at near five hundred dollars a share. Those who bought into the hype may not be fools after all.
Re: something the author did not consider
by rohit agarwal on Jun 06, 2012 10:29 AM
Facebook's valuation is at 100 times the revenue which is far greater than Google or Apple.
Secondly the business model for facebook isn't as much robust yet. While they have user stickiness, they are yet to use that. So it will be a while before we see they making profits.
The valuation at $30 is still high and it will be fool buying them for a short term. If you are a long term buyer than it may make sense to invest and keep quiet for next 4-5 years.
As you mentioned Amazon was also a long term investment. However in stock market you will most of the participants as short term players or day traders and therefore its expensive for them.
Re: Re: Re: something the author did not consider
by Shamik C on Jun 06, 2012 10:58 PM
its sudden paper money out of conceived valuation--- economy can not suddenly absorbed 100 billion notional money--- so naturally on opening it will contract especially zuckerberg / savine sold part of their stake... it is trying to find his value...26 as on date...but FB has untapped intrinsic value!!
