Are you buying shares in Facebook?

Finally something to do with all this extra cash I have just burning up my wallet and bank accounts!

Helpful Hint from Heloise: Use your cash to wipe your ass before you burn it and turn the ash under the soil. Waste not, want not!

I’m considering it. The amount I would buy would be a half-portion of the amount I use for wild-ass ideas and pure speculation and would represent far south of 1% of my portfolio (which is invested entirely in US and international index funds).

I wouldn’t buy at this price.
If this isn’t too much of a tangent, let’s guess what it will be at on close of Fri 5/25

My guess: $33

It all depends on what they do with this cash they have now. They can either save it up and make relatively cheap changes to this site and revenue streams or buy up a few good companies that can actually make money or ensure their position at the top. Netflix,their competitors, a gaming company or two I dont know, whatever.

Even then with super smart buyouts and increased revenue this company has a long way to go to prove the current valuation. I feel Mark will make a stumble and likely shave off over 20% of its user base by late next year. He is just not the Guru like the leaders of some other great tech companies.

Facebook and the like probably wont ever go away. It works on our ego and desire to be gossipy and snoopy. But people that are really into that tend to be fickle and will jump ship at the slightest provocation.

Stock price 18-21 by the end of the year. At best.

There was a lot of shares sold at the 38 mark yesterday. FB had severe downward momentum. I am going with

29.50

I’ll confess. We bought one hundred shares at $38 each. We’ll see what happens a few years from now as I rarely buy and sell that quickly. Hey you never know. We bought Apple when it was under $100 per share. The last time I checked it was over $500 per. Most of my friends and family are on Facebook including my 67 year old mom who isn’t exactly a technophile.

Given their current position with ad revenues - is there something that makes you think they will improve their ability to make money from ads to their current audience?

Yikes!

It’s trading at $33.62.

Stayed well away from it. Facebook is a decent company that was massively overvalued. The one bright spot is they raised a ton of capital on IPO day for the company itself, so they have a nice war chest to try and develop revenue streams. Ultimately I expect Facebook to probably be profitable long term, but that’s a lot different than saying it will be worth what its stock price suggests it should be worth anytime in the near future.

I’d say that the recent drop is a bad sign-the rubes have been fleeced.
Still-could be another Amazon…give them a few years.

Yeah, I knew it would be bad, but I didn’t think it would be this bad. I think I just felt a little tingle of schadenfreude.

Honestly? I don’t know. My husband made the decision this time as I’ve been completely buried in work the last few weeks. I generally favor slightly safer investments such as dividend paying blue chips with a good p/e ratio. He’s willing to take a flyer sometimes. It often works out for us. He was the one who picked Apple when it was under $100.

We have a 20 year time horizon and it was relatively tiny investment compared to the size of our portfolio so I’m not that worried.

I really don’t know where else to put our savings other than the market at this point. Neither banks nor t-bills really pay any significant interest at this point.

Facebook:

Earnings: $1 billion.
Initial Valuation: $100 billion

Price to Earnings Ratio: 100x

To give you a few other examples (in whole numbers);

GE 16x
Google 14x
Apple 13x
Walmart 13x

Need I go on?

I voted “No” but a more accurate choice would have been “Not now.” I will watch it and might be interested if/when it gets to $15.

Mine would have been “I’m sorry I wasn’t able to short it”. We’re in an IT-bubble.

Me, too. My Econ students have to listen to me chortle every morning about this IPO.

Underwriters secretly cut Facebook earning estimatesbefore the IPO:

It’s not the servers that are worth $120B. Its 900 Million idiots freely giving Billions of dollars worth of marketing information to them on a daily basis. Facebook is not the product they are selling. YOU are.

Do not believe that 900 million number.