The Lions' Pride

Yea, microsoft paid $240 million for less than 2% of facebook ... they too never wanted to make it a successful company.

Maybe there is sarcasm in your post ... not sure.

Downvotes from people - yet look who was right.

Insiders push it up to 42 - get the word that it's going to flop....the triggers hit for shortsales (PUMP & DUMP) and then look where it is today on 5/24 31.85 ( Low 30's)

The thing people need to realize with a product such as facebook is - we are not the consumer we are the product. There is no such thing as a free lunch.

Facebook is a huge data warehouse of likes/interests/photos/statuses/location-awareness/etc. This can be monetized if they want to do it. If they want to monetize they need to start selling off all this warehoused data to the highest bidders.

Few problems with Facebook, that make its 100x valuation ridiculous.

Ad space is limited and it goes by the number of page views (and also on the total number of users). Whenever you refresh, open up a new page, etc..this opens up the ad space.

China issue. Even if they get into China and double their users and double their revenue, it would still be 50x more valuable.

Competition is still an issue despite them not having much competition at this time.

The 100x valuation was ridiculous. Apples valuation is 15x revenue and Google (which both also have bright futures like I believe Facebook still has) is 20x.

Future growth potential in developing markets. This is where the future users of Facebook will come from, with most of its users in Western Europe and US right now. However, those people people currently are not really wealthy enough for advertisers to drool over.

"Growth in the number of active users at Facebook, defined as someone who logs on at least once a month:

1 million -- End of 2004.

5.5 million -- End of 2005.

12 million -- End of 2006.

20 million -- April 2007.

50 million -- October 2007.

100 million -- August 2008.

150 million -- January 2009.

175 million -- February 2009.

200 million -- April 2009.

250 million -- July 2009.

300 million -- September 2009.

350 million -- End of 2009.

400 million -- February 2010.

500 million -- July 2010.

608 million -- End of 2010.

750 million -- July 2011.

800 million -- September 2011.

845 million -- End of 2011.

901 million -- March 2012.

Source: Facebook Inc."

So they are getting 901 million users at least once a month to log on. If ALL of these users only logged in 1 time a month, that is still pretty significant.

Wrong on a few levels. Zuck and his "tech buddies" that got in "cheap" now own mostly restricted shares. They cannot be sold for usually at least 6 months to a year and require regulatory filing and legal opinions before they can be sold amongst other things. So more than likely this insiders were not dumping shares. But naturally, the insiders are now rich regardless. But the people that got in on the deal at a reduced IPO price of say $35 are now locked into this thing for 6 months at a much higher price then free clean shares could be purchased at today in the open market...not ideal.

Now hedge funds and large institutions that recognized how overvalued the stock is/was - they were making money shorting it once it opened and popped. Combine the fact that MS was the buyer of the shares to keep it above the IPO price on Friday and was going to be a big seller come Monday, then being short Friday/Monday made a lot of sense. Crappy earnings a cpl weeks before, plus Zuck showing up to the deal show in a hoodie, the market tanking all week on Europe and general skepticism over the earnings power of the company all combined to make this a disaster. Nasdaq just iced the cake.

Also, it was most likely the retail investors that bought the hype and put in market orders at the open in a frenzy that drove the stock price up. MS stepped in to create a floor at $38 but the big players were looking to short this thing once the retail mom and pops finished buying the crap up

Quick poll for anyone who bought and sold FB: Which 24/7 member lost the most amount of money on the stock?

Should be interesting...

Believe me, at 30 I am part of the hoodie generation. But I don't really feel it is an issue of not bowing down to the suits. Bottom line is he was essentially soliciting billions of dollars from people and those people were skeptical about what his intentions were/are. Some felt that he was cashing in his lottery ticket while the value was high and is rather indifferent to growing his company much more beyond that. When you are considering investing massive amounts of money and you are torn as to whether something is the next google or the next "loseyourmoney.com" little things like that matter. I didn't take it as a sign of disrespect but more a confirmation that this guy may not really give a sht once the money hits the bank account. If you were on the fence and looking or confirmation one way or the other, something small like that makes a difference

Well if you own a 401k or 403b you most likely bought it and lost some on it(at least on paper for now). All the major 401k bought in on the initial offering.

lol, I never said that. I said "get used to it. Its a different generation." Where in there did I imply that this generation is anything special? I was just pointing out that its a different generation, like the "Greatest Generation" and the "Silent Generation" wearing the old fashion suits and vests and big on sartorialism, to the Baby Boomers generation where that look sort of went the way, to this generation that does not even where suits unless needed. They each had their own motivations and reasons why that is. For example, tech is the defining of the Zuck generation, and tech has its own personality, like banking has its own. Zuck just felt he did not need to dress up out of his own personality and style to please the bankers. Jobs prob. would've done the same thing and he was from a different generation. While Zucks is socially awkward, he and Jobs are both extremely confident to arrogant about their abilities (like most leaders).

BTW, I like the old fashion sartorialism look from a couple generations ago.

Down 3 dollars today, wonder how much lower can and will it go.

All those employees with RSUs are starting to sweat.

I heard a few analysts call it at $13.

At today's close, $28, it's 62x earnings.

So $14 is 31x earnings, still pretty rich isn't it.