Facebook shares hit new low

Discussion in 'Current Events' started by tekno, May 29, 2012.

  1. macrumors 6502a

    Joined:
    Oct 15, 2011
    #1
  2. macrumors 601

    Joined:
    Aug 15, 2005
    #2
    I don't use Facebook nor do I agree with their initial valuation. That said, I see no need to be happy over the drop in stock price.
     
  3. macrumors G5

    jav6454

    Joined:
    Nov 14, 2007
    Location:
    1 Geostationary Tower Plaza
    #3
    Zuckerberg (confirmed ass) is loosing money on an overhyped valuation, I see complete reason to be happy.
     
  4. Guest

    Joined:
    May 8, 2008
    #4
    Dare I ask for a source?
     
  5. macrumors G5

    jav6454

    Joined:
    Nov 14, 2007
    Location:
    1 Geostationary Tower Plaza
    #5
    Lol... no need...
     
  6. macrumors 603

    notjustjay

    Joined:
    Sep 19, 2003
    Location:
    Canada, eh?
    #6
    What, haven't you seen The Social Network? ;)
     
  7. macrumors demi-god

    Shrink

    Joined:
    Feb 26, 2011
    Location:
    New England, USA
    #7
    And that constitute a record of historical accuracy?

    I'm not, by any stretch of the imagination, defending Zuckerberg, as I know nothing about him. I saw the film and am aware that it is not exactly a documentary.

    He may well be the ******* you think he is, but that movie is not a citation of any value.
     
  8. macrumors Penryn

    rdowns

    Joined:
    Jul 11, 2003
    #8
  9. macrumors 6502a

    Mavimao

    Joined:
    Feb 16, 2005
    Location:
    Lyon, France
    #9
    Since when is stupidity rewarded? Facebook doesn't create anything. Their main revenue intake is investors and banner ads. If people were stupid enough to invest in an obvious bubble IPO, I don't feel any more sorry for them than I would someone sticking their tongue in a light socket.

    Let us remember that the stock market is a casino. You are not "investing" so much as you are betting that you will make money.
     
  10. macrumors 68020

    Liquorpuki

    Joined:
    Jun 18, 2009
    Location:
    City of Angels
    #10
    That's all Google did back in 04 when they went public. And they're still around.

    Zuckerberg isn't losing money. Investors are. And most of those investors are speculators who thought they'd be able to make a quick profit when the stock shot up on the first day. Instead it was overpriced because info was withheld and the stock didn't go anywhere.

    For FB, being overpriced was the best thing that could happen to it. It maximized the amount of money it raised as an IPO.

    Yeah, that movie showed Zuckerberg's primary motive for creating FB was to try and win back his white girlfriend. In the real world, he'd been with his Chinese girlfriend for years and they're now married. Can't wait to see what Sorkin does to Jobs' life.
     
  11. thread starter macrumors 6502a

    Joined:
    Oct 15, 2011
    #11
    Yes, I am (hence the "ha ha haaaa" in my first post). When people think a website is worth $100bn, they deserve to lose. The sheer number of tech bubbles that have popped over the last 10yrs and people still listen to the hype and wave their cash. They deserve to lose it.
     
  12. macrumors 65816

    ejb190

    #12
    Pretty good analysis of the whole situation here and here from the Motley Fool.

    You know, it is possible to loose money in the stock market. It amazes me that people could see this as a "sure thing". The first article hits the nail on the head, though. You can not go into stocks thinking that Wall Street has your best interest at heart.
     
  13. macrumors 601

    OneMike

    Joined:
    Oct 19, 2005
    #13
  14. macrumors P6

    iJohnHenry

    Joined:
    Mar 22, 2008
    Location:
    On tenterhooks
    #14
    Facebook shares hit new low

    It's not often that you hear that said. [​IMG]

    [​IMG]

    [​IMG]
     
  15. macrumors 68020

    Liquorpuki

    Joined:
    Jun 18, 2009
    Location:
    City of Angels
    #15
    FB is overpriced and the hype makes them a bubble

    But they have genuine clout (16% of all internet page clicks are FB page clicks) and can make a lot of money for investors if Zuckerberg knows what he's doing

    If he leverages that 8 billion in IPO money and does it right, there's a chance the bubble might not ever pop
     
  16. macrumors 6502a

    Joined:
    Apr 24, 2012
    Location:
    Denver Colorado
    #16
    It's estimated that FB has lost about $35 billion since its debut.
     
  17. macrumors 68030

    Mr. McMac

    Joined:
    Dec 21, 2009
    Location:
    Long Island, NY
  18. macrumors 6502

    Joined:
    Apr 11, 2012
    #18
    How did they lose it? Where did the values go?

    This is a tricky-question; the values weren't there in the first place.
     
  19. macrumors Core

    MacNut

    Joined:
    Jan 4, 2002
    Location:
    CT
    #19
    Nieve stock market question, but if the initial IPO was 38 and then opened at 42 and finally dropped to around 28 where did that initial investing money go and why did it not hold back to the opening price.
     
  20. macrumors 68000

    Joined:
    Aug 11, 2008
    #20
    Facebook.

    The entire idea of an IPO is to issue new shares to raise money for the company.

    After that there is no "money" going anywhere than between investors like any other stock. And like any other asset it can go up or down in value.
     
  21. macrumors Core

    MacNut

    Joined:
    Jan 4, 2002
    Location:
    CT
    #21
    If there is no money what pushes the stock down?
     
  22. macrumors 68000

    Joined:
    Aug 11, 2008
    #22
    Huh?

    What pushes the price of a used car down vs pushing the value of a "classic" car up?

    The stock goes down because the price people are offering to pay for it is less than what people paid for it originally. No one forced anyone to buy in at 38 or 42. Also, no one forced anyone to sell at 38 or 42.
     
  23. macrumors 6502a

    Joined:
    Apr 26, 2011
    #23
    This isn't in PRSI so I won't go into details... but daily.
     
  24. macrumors Core

    MacNut

    Joined:
    Jan 4, 2002
    Location:
    CT
    #24
    So did the initial investors who set the price at 38 lose when the price tanked or did they get their money back and the people who bought after the IPO lose out? Just trying to wrap my head around how a stock can open at 38 with trading not even started and then lose most of it in 3 days considered they said it was the highest amount of shares ever.
     
  25. macrumors 68000

    Joined:
    Aug 11, 2008
    #25
    If the traders sold at $38 or above then they got their money back and then some.

    If they held onto it it is a loss like any other stock.

    Think of it like an auction (well it is EXACTLY like an auction). The initial price is exactly tied to what Facebook can sell the stock to the market. Initially the price and number of shares was lower but because more and more people wanted "in" on it, price and quantity went up.
     

Share This Page