# Are you buying shares in Facebook? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [May 17, 2012, 4:28pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222 "2012-05-17T16:28:12Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![sparky\_1](https://avatars.discourse-cdn.com/v4/letter/s/77aa72/32.png) [@sparky\_1](https://boards.straightdope.com/u/sparky_1)\ **Post date:** [May 17, 2012, 4:28pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/1 "2012-05-17T16:28:12Z")
Well, are you? Facebook seems to be way over valued. ---
**Author:** ![Jonathan\_Chance](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jonathan_chance/32/701_2.png) [@Jonathan\_Chance](https://boards.straightdope.com/u/Jonathan_Chance)\ **Post date:** [May 17, 2012, 4:30pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/2 "2012-05-17T16:30:22Z")
No. Nor do I advise my clients to do so. ---
**Author:** ![Patience\_Jones](https://avatars.discourse-cdn.com/v4/letter/p/ec9cab/32.png) [@Patience\_Jones](https://boards.straightdope.com/u/Patience_Jones)\ **Post date:** [May 17, 2012, 4:32pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/3 "2012-05-17T16:32:15Z")
I wouldn’t dream of it. ---
**Author:** ![Diceman](https://avatars.discourse-cdn.com/v4/letter/d/22d042/32.png) [@Diceman](https://boards.straightdope.com/u/Diceman)\ **Post date:** [May 17, 2012, 4:39pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/4 "2012-05-17T16:39:26Z")
No way. It’s a fad stock that’s been way overhyped. The people who buy the stock are probably going to end up losing money when the price declines to something more sensible. ---
**Author:** ![JohnT](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/johnt/32/15048_2.png) [@JohnT](https://boards.straightdope.com/u/JohnT)\ **Post date:** [May 17, 2012, 4:45pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/5 "2012-05-17T16:45:06Z")
Hell to the no. Overvalued IPO’s for potentially iffy companies are not my thing. ---
**Author:** ![Patty\_O\_Furniture](https://avatars.discourse-cdn.com/v4/letter/p/96bed5/32.png) [@Patty\_O\_Furniture](https://boards.straightdope.com/u/Patty_O_Furniture)\ **Post date:** [May 17, 2012, 5:21pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/6 "2012-05-17T17:21:53Z")
Strange. Everything I see says FB will be one of the hottest IPOs ever. [Want a piece of Facebook? Get in line](http://www.bangkokpost.com/news/world/293229/want-a-piece-of-facebook-get-in-line). > [@](#): > > Facebook may be the year’s hottest stock issue – but try getting a piece of it. Small investors will find the line long and hurdles high to get even a handful of shares. [Facebook boosts number of IPO shares by 25%](http://www.bangkokpost.com/news/world/293615/facebook-feeds-hungry-ipo-investors-more-shares) > [@](#): > > The raised IPO share price, as well as the increase in the number of shares available, reflects confidence in stock for the the Menlo Park, California-based company. > > Facebook is already assured of becoming the most valuable US Web company at the time of an IPO, topping Google’s $23 billion valuation in 2004. ---
**Author:** ![Trom](https://avatars.discourse-cdn.com/v4/letter/t/958977/32.png) [@Trom](https://boards.straightdope.com/u/Trom)\ **Post date:** [May 17, 2012, 5:31pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/7 "2012-05-17T17:31:45Z")
If I could get it at the ~$35 per share IPO price? Yes. I wouldn’t be surprised if it opens $45+ on the secondary market tomorrow. I wouldn’t buy it on the secondary market. ---
**Author:** ![Rigamarole](https://avatars.discourse-cdn.com/v4/letter/r/77aa72/32.png) [@Rigamarole](https://boards.straightdope.com/u/Rigamarole)\ **Post date:** [May 17, 2012, 6:18pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/8 "2012-05-17T18:18:30Z")
Where’s the “fuck no” option? ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [May 17, 2012, 6:24pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/9 "2012-05-17T18:24:44Z")
I have no idea. I am invested in over twenty mutual funds, I am sure one of them will buy some, but I really haven’t looked into it. ---
**Author:** ![JohnT](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/johnt/32/15048_2.png) [@JohnT](https://boards.straightdope.com/u/JohnT)\ **Post date:** [May 17, 2012, 6:38pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/10 "2012-05-17T18:38:07Z")
> [@Patty\_O\_Furniture](#): > > Strange. Everything I see says FB will be one of the hottest IPOs ever… Well, people who want to invest in hot things are all over this IPO like stink on shinola. Momentum players are likely also interested, knowing that the zillions of people shut out of the IPO will bid the stock higher over the next few days/weeks/months. I prefer a value-based investing strategy myself, which is why I wouldn’t touch Facebook - I don’t think the value is there. Here’s what Henry Blodget (yes, _that_ Henry Blodget) has to say about Facebook: > [@](#): > > Facebook’s current business simply does not support a valuation of $125 billion, or wherever the stock ends up trading after the IPO. (Some folks, like Paul Kedrosky, think the stock will close tomorrow at a valuation $150 billion. And that’s actually quite plausible, especially since a huge amount of the demand for Facebook stock is being driven by people who think it’s a great investment because they use it.) > > So that means that investors who pay $125-$150 billion for Facebook today are counting on Facebook introducing new products that radically improve its business and profits. > > For Facebook to actually be worth $125-$150 billion or more today, it will have to be worth, say, $300-$400 billion in a few years. Otherwise, the downside risk in ths stock simply isn’t worth taking. And to actually be worth $300-$400 billion in a few years, Facebook will have to be earning about 10X-20X as much money as it earned last year. > > Why? > > Because, someday, Facebook will stop being the market’s favorite “shiny new object” and will start being just another cool tech company. And when that happens, investors will probably place the same multiple on Facebook’s earnings that they place on other cool tech companies, like Apple and Google. > **[Okay, Here's Some Inside Information For All You Facebook Bulls...](https://www.businessinsider.com/facebook-new-products-2012-5)** > > Facebook unveils new products aimed at enhancing user engagement and expanding its advertising capabilities. ---
**Author:** ![Dallas\_Jones](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dallas_jones/32/3277_2.png) [@Dallas\_Jones](https://boards.straightdope.com/u/Dallas_Jones)\ **Post date:** [May 17, 2012, 7:06pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/11 "2012-05-17T19:06:43Z")
Had this IPO been made 5 or 6 years ago it would have been a hot stock to get into, for a while. The owners have waited too long to cash in and I believe that they are doing so now because they finally see this. They are taking the money and running. Facebook already has most of the customers/users/data providers that they can get within the US. This IPO will not bring in new users, there may be potential new users in other countries and markets but the US is tapped out. And Something Else will take the place of Facebook before it ever evolves into the next New Thing. New Things get stale and Facebook is running out of shelf life. In 5 or 6 years it will be about as hip, with-it, next best thing as AOL is today. Let’s chat more about this on ICQ. 😉 ---
**Author:** ![Labrador\_Deceiver](https://avatars.discourse-cdn.com/v4/letter/l/7c8e57/32.png) [@Labrador\_Deceiver](https://boards.straightdope.com/u/Labrador_Deceiver)\ **Post date:** [May 17, 2012, 7:10pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/12 "2012-05-17T19:10:06Z")
If you can get in on the IPO, you’d be rather foolish not to buy it. In and out by lunch tomorrow, with a rather tidy profit. I’m not sure I’d buy on the secondary market, depending upon the opening price. It may go down, but I suspect it’s going up first. I’m trying to get as much of the IPO as I can for my clients, but I doubt it will happen. ---
**Author:** ![PandaBear77](https://avatars.discourse-cdn.com/v4/letter/p/edb3f5/32.png) [@PandaBear77](https://boards.straightdope.com/u/PandaBear77)\ **Post date:** [May 17, 2012, 7:13pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/13 "2012-05-17T19:13:02Z")
Having had experience with Facebook’s idea of customer service – no. ---
**Author:** ![Barkis\_is\_Willin](https://avatars.discourse-cdn.com/v4/letter/b/a183cd/32.png) [@Barkis\_is\_Willin](https://boards.straightdope.com/u/Barkis_is_Willin)\ **Post date:** [May 17, 2012, 7:29pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/14 "2012-05-17T19:29:07Z")
Which seems more likely, Facebook skyrockets from here or Facebook eventually tanks? For me (and apparently everyone else here), it’s the latter. I’m sure it’s a novelty for some people to say they “own” part of Facebook or something, but it doesn’t seem like a good investment. ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [May 17, 2012, 7:34pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/15 "2012-05-17T19:34:58Z")
> [@Rigamarole](#): > > Where’s the “fuck no” option? Ha. I said the exact same thing. Actually, I want a “fuck no and I’m shorting it next month” option. ---
**Author:** ![Rigamarole](https://avatars.discourse-cdn.com/v4/letter/r/77aa72/32.png) [@Rigamarole](https://boards.straightdope.com/u/Rigamarole)\ **Post date:** [May 19, 2012, 4:41pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/16 "2012-05-19T16:41:52Z")
Good thing we didn’t buy. Even the IPO was a total flop - it’s doing worse than I expected right out of the gate. ---
**Author:** ![Taomist](https://avatars.discourse-cdn.com/v4/letter/t/53a042/32.png) [@Taomist](https://boards.straightdope.com/u/Taomist)\ **Post date:** [May 19, 2012, 4:57pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/17 "2012-05-19T16:57:11Z")
> [@Dallas\_Jones](#): > > Had this IPO been made 5 or 6 years ago it would have been a hot stock to get into, for a while. > > The owners have waited too long to cash in and I believe that they are doing so now because they finally see this. They are taking the money and running. > > Facebook already has most of the customers/users/data providers that they can get within the US. This IPO will not bring in new users, there may be potential new users in other countries and markets but the US is tapped out. And Something Else will take the place of Facebook before it ever evolves into the next New Thing. > > New Things get stale and Facebook is running out of shelf life. In 5 or 6 years it will be about as hip, with-it, next best thing as AOL is today. Let’s chat more about this on ICQ. 😉 Pretty much this. I know the underwriters bid the stock up so it didn’t sink below 38, and an above poster was probably right about those shut out of the initial offering being all hot the next month or so, and the stock may go up. But I can’t see the real _value_ going up; though who knows, things change every day. But that’s just my opinion as a total trading outsider, knowing nothing about anything regarding stocks. But if even I won’t buy into the hype, I’m not sure who will. ---
**Author:** ![Jamicat](https://avatars.discourse-cdn.com/v4/letter/j/c67d28/32.png) [@Jamicat](https://boards.straightdope.com/u/Jamicat)\ **Post date:** [May 19, 2012, 11:33pm UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/18 "2012-05-19T23:33:20Z")
Facebook isn’t even real, how does a room of servers equate to 120 billion dollars? The Oil Industry has Real Stuff…Gold is Real Stuff. Buy shares in Zynga instead, they got at least 20 bucks from me, till’ I woke up one day and said screw this Farmville shit. :dubious: ---
**Author:** ![Rigamarole](https://avatars.discourse-cdn.com/v4/letter/r/77aa72/32.png) [@Rigamarole](https://boards.straightdope.com/u/Rigamarole)\ **Post date:** [May 20, 2012, 12:02am UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/19 "2012-05-20T00:02:03Z")
> [@Jamicat](#): > > Facebook isn’t even real, how does a room of servers equate to 120 billion dollars? Well, in all fairness, I bet they’re really shiny servers! ---
**Author:** ![Chimera](https://avatars.discourse-cdn.com/v4/letter/c/8e8cbc/32.png) [@Chimera](https://boards.straightdope.com/u/Chimera)\ **Post date:** [May 20, 2012, 12:11am UTC](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222/20 "2012-05-20T00:11:02Z")
You’d get more long term value from the money by taking it out back, burning it and turning the ash beneath the soil. [Next page](https://boards.straightdope.com/t/are-you-buying-shares-in-facebook/622222.md?page=2)