So???

**Hawkgirl** · 05-18-2012, 03:35 PM

Who bought Facebook (fb) stock today?

I finally placed a Limit order last night. Not enough to make or break me, but I wanted to be in the "game" It was supposed to start on the Nasdaq this morning at 11:00am, but didn't start trading till 11:30 due to glitches. It was supposed to start at $38/share, but opened at 42-43. I placed a limit order on 40. Now trading at the 38 mark. I'm hoping it's my next AAPL stock that I bought 3 years ago at $75 and now trading at $538.00

**SarasotaRepub** · 05-18-2012, 06:01 PM

Looks like it closed at $38.23 and is $40.03 after hours.

Meh.

**Articulate_Ape** · 05-18-2012, 06:19 PM

It's hovering around $38.50 AH, which is about $34.00 more than it's worth. Watching the FB frenzy today made me feel like I was back in 1999 during the .com bubble. It is trading at a market cap of $100-$110 billiion, a P/E of 88, and a price to book ratio of 11:1 (more than twice what I would consider the high side of rational). To top that off they had revenues of just around $4 billion in the TTM. You do the math.

FB is going to have to have an absolutely spectacular next five years of earnings just to get their fundamentals anywhere near the valuation of this IPO. It's madness.

**Rockntractor** · 05-18-2012, 06:28 PM

In my mind you are buying into an idea with no hard assets or substance, as long as the fad stays alive you have something, if trends change tomorrow you're in trouble.
But don't listen to me, I'm not rich.

**Articulate_Ape** · 05-18-2012, 06:35 PM

Originally Posted by Rockntractor

In my mind you are buying into an idea with no hard assets or substance, as long as the fad stays alive you have something, if trends change tomorrow you're in trouble.
But don't listen to me, I'm not rich.

That's very true, Rock. But even more than that, even if FB is here to stay, one would have to be wildly optimistic to expect it to justify its current valuation even 5 years from now. Unless there is some rabbit in the hat here, this thing is going to get a major correction in the coming weeks. We'll see. I am no stranger to risk, but I wouldn't touch this issue with a 10 foot pole at these levels.

**Hawkgirl** · 05-18-2012, 06:39 PM

I didn't buy much of it. I can sleep well at night. I normally stick with blue chips and gold. But I wanted a piece of the action. I'm not shorting the stock any time soon. Facebook doesn't sell a product, but it provides a service. A service of advertisement which is a big business. As long as advertisers continue to use FB, they will prosper.

**Rockntractor** · 05-18-2012, 06:41 PM

Originally Posted by Articulate_Ape

That's very true, Rock. But even more than that, even if FB is here to stay, one would have to be wildly optimistic to expect it to justify its current valuation even 5 years from now. Unless there is some rabbit in the hat here, this thing is going to get a major correction in the coming weeks. We'll see. I am no stranger to risk, but I wouldn't touch this issue with a 10 foot pole at these levels.

They offered it to make a bunch of money, they didn't decide they were bursting with to much money and had to share it with a bunch of people, I have friends that viewed it as a pot of gold they were getting ready to hand out.

**Hawkgirl** · 05-18-2012, 06:43 PM

BTW...I notice that the Huffingngpuffington post keeps taking jabs at FB on their website. They started back on Monday, a week before their IPO date. Every day, there was a facebook smear article. It almost looks personal. Today, after closing bell, they stated what an embarrassment it was to close at the same price it opened. They want facebook to fail. Which makes me feel good about buying the stock, because the opposite of what is posted on that website is usually true.

**Rockntractor** · 05-18-2012, 06:47 PM

Originally Posted by Hawkgirl

BTW...I notice that the Huffingngpuffington post keeps taking jabs at FB on their website. They started back on Monday, a week before their IPO date. Every day, there was a facebook smear article. It almost looks personal. Today, after closing bell, they stated what an embarrassment it was to close at the same price it opened. They want facebook to fail. Which makes me feel good about buying the stock, because the opposite of what is posted on that website is usually true.

Wasn't there something on the news about one of the owners renouncing citizenship? if that is so it may be why they are doing it.

**Hawkgirl** · 05-18-2012, 06:54 PM

Originally Posted by Articulate_Ape

It's hovering around $38.50 AH, which is about $34.00 more than it's worth. Watching the FB frenzy today made me feel like I was back in 1999 during the .com bubble. It is trading at a market cap of $100-$110 billiion, a P/E of 88, and a price to book ratio of 11:1 (more than twice what I would consider the high side of rational). To top that off they had revenues of just around $4 billion in the TTM. You do the math.

FB is going to have to have an absolutely spectacular next five years of earnings just to get their fundamentals anywhere near the valuation of this IPO. It's madness.

Zuckerberg is a genius...I have confidence that he will find ways for the company to make money. They are going to do target advertisement soon and the company has enough users to make doing business with fb palatable for companies. Once he starts selling his lists of users and starts tailoring advertisement to their likes and dislikes, companies will choose FB over billboards and the real money will start pouring in. Government Motors pulled out of fb earlier this week though, we shall see if that trend continues.