# Facebook Stock **URL:** \ **Category:** In My Humble Opinion\ **Created:** [April 28, 2016, 3:21pm UTC](https://boards.straightdope.com/t/facebook-stock/753340 "2016-04-28T15:21:40Z")\ **Posts on this page:** 16\ **Page:** 1
**Author:** ![Whitney\_Harper](https://avatars.discourse-cdn.com/v4/letter/w/f0a364/32.png) [@Whitney\_Harper](https://boards.straightdope.com/u/Whitney_Harper)\ **Post date:** [April 28, 2016, 3:21pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/1 "2016-04-28T15:21:40Z")
What do you think of Facebook’s stock going up a lot today? In addition, what do you think it will be worth in 5-10 years? ---
**Author:** ![yearofglad](https://avatars.discourse-cdn.com/v4/letter/y/b782af/32.png) [@yearofglad](https://boards.straightdope.com/u/yearofglad)\ **Post date:** [April 28, 2016, 3:27pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/2 "2016-04-28T15:27:51Z")
Reported for forum change. ---
**Author:** ![Exapno\_Mapcase](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/exapno_mapcase/32/1051_2.png) [@Exapno\_Mapcase](https://boards.straightdope.com/u/Exapno_Mapcase)\ **Post date:** [April 28, 2016, 3:41pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/3 "2016-04-28T15:41:52Z")
> [@Whitney\_Harper](#): > > what do you think it will be worth in 5-10 years? Nobody in this world knows. Ask a medium. ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [April 28, 2016, 5:43pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/4 "2016-04-28T17:43:57Z")
Moved to IMHO from General Questions. ---
**Author:** ![DigitalC](https://avatars.discourse-cdn.com/v4/letter/d/ebca7d/32.png) [@DigitalC](https://boards.straightdope.com/u/DigitalC)\ **Post date:** [April 28, 2016, 5:45pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/5 "2016-04-28T17:45:51Z")
It went up because their earnings are up. Who knows where it will be in five years, it does seem to be getting near the time for it to go the way of myspace though. ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [April 28, 2016, 6:06pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/6 "2016-04-28T18:06:29Z")
> [@DigitalC](#): > > It went up because their earnings are up. Who knows where it will be in five years, it does seem to be getting near the time for it to go the way of myspace though. I’m interested in how institutional investors will value the stock subsequent to Zuckerberg’s latest restructuring shenanigan, in which he will [severely dilute](http://www.businesstoday.in/buzztop/buzztop-corporate/facebook-proposes-new-non-voting-shares-to-keep-mark-zuckerberg-at-helm/story/231494.html) almost all voting shares held by the public. ---
**Author:** ![Trom](https://avatars.discourse-cdn.com/v4/letter/t/958977/32.png) [@Trom](https://boards.straightdope.com/u/Trom)\ **Post date:** [April 28, 2016, 7:04pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/7 "2016-04-28T19:04:53Z")
> [@friedo](#): > > I’m interested in how institutional investors will value the stock subsequent to Zuckerberg’s latest restructuring shenanigan, in which he will [severely dilute](http://www.businesstoday.in/buzztop/buzztop-corporate/facebook-proposes-new-non-voting-shares-to-keep-mark-zuckerberg-at-helm/story/231494.html) almost all voting shares held by the public. It shouldn’t make much of a difference. It’s not dilutive in the sense of equity ownership. If you own $100 of FB before the restructuring, you’ll own $100 after the restructuring. The duel share class will allow Zuckerberg to give away his equity stake without losing decision making power over the company. ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [April 28, 2016, 7:13pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/8 "2016-04-28T19:13:53Z")
> [@Trom](#): > > It shouldn’t make much of a difference. It’s not dilutive in the sense of equity ownership. If you own $100 of FB before the restructuring, you’ll own $100 after the restructuring. The duel share class will allow Zuckerberg to give away his equity stake without losing decision making power over the company. Right, but it’s dilutive of voting power, in a company where one dude already has majority control. What will institutional shareholders think when it becomes clear that it will never be possible to fire Zuck? ---
**Author:** ![Trom](https://avatars.discourse-cdn.com/v4/letter/t/958977/32.png) [@Trom](https://boards.straightdope.com/u/Trom)\ **Post date:** [April 28, 2016, 7:23pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/9 "2016-04-28T19:23:55Z")
> [@friedo](#): > > Right, but it’s dilutive of voting power, in a company where one dude already has majority control. What will institutional shareholders think when it becomes clear that it will never be possible to fire Zuck? I think they already know. Similar to the situation at Google, investors are apparently pretty satisfied with his leadership. If he starts making ridiculous decisions, the stock price would reflect it. As far as the value of A class vs. C class, I’d expect the As to trade at a premium of somewhere around 2% to 6%. ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [April 28, 2016, 8:05pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/10 "2016-04-28T20:05:26Z")
At least with the current setup, there was a real possibility that MZ would slowly sell off his controlling interest and outsiders might gain significant influence on the Board. Now that will never happen. Large investors would much rather have the option of replacing management that they don’t like instead of just watching things burn and running for the exit. ---
**Author:** ![Count\_Blucher](https://avatars.discourse-cdn.com/v4/letter/c/c5a1d2/32.png) [@Count\_Blucher](https://boards.straightdope.com/u/Count_Blucher)\ **Post date:** [April 28, 2016, 8:08pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/11 "2016-04-28T20:08:54Z")
> [@Exapno\_Mapcase](#): > > Nobody in this world knows. Ask a medium. Agreed. While the research of people who claim to be able to predict the future of stocks isn’t rare, its almost never well done. ---
**Author:** ![Count\_Blucher](https://avatars.discourse-cdn.com/v4/letter/c/c5a1d2/32.png) [@Count\_Blucher](https://boards.straightdope.com/u/Count_Blucher)\ **Post date:** [April 28, 2016, 8:16pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/12 "2016-04-28T20:16:54Z")
PS- of equal “scientific merit” my picks for the Derby are: Brody’s Cause Oscar Nominated (Boxed) “He Pissed It All Away…!” - David Johansen ---
**Author:** ![Trom](https://avatars.discourse-cdn.com/v4/letter/t/958977/32.png) [@Trom](https://boards.straightdope.com/u/Trom)\ **Post date:** [April 28, 2016, 8:31pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/13 "2016-04-28T20:31:51Z")
> [@Count\_Blucher](#): > > Agreed. > > While the research of people who claim to be able to predict the future of stocks isn’t rare, its almost never well done. And [those](https://en.wikipedia.org/wiki/Renaissance_Technologies) that can do it successfully won’t tell you how it’s done. ---
**Author:** ![Chefguy](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/chefguy/32/138_2.png) [@Chefguy](https://boards.straightdope.com/u/Chefguy)\ **Post date:** [April 28, 2016, 8:46pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/14 "2016-04-28T20:46:46Z")
I pretty much avoid any company that doesn’t actually produce anything. No idea why FB stock would rise, but I’m not enticed in the least. As a side note, Chobani is going public, and I like their products. ---
**Author:** ![Exapno\_Mapcase](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/exapno_mapcase/32/1051_2.png) [@Exapno\_Mapcase](https://boards.straightdope.com/u/Exapno_Mapcase)\ **Post date:** [April 28, 2016, 10:46pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/15 "2016-04-28T22:46:33Z")
> [@Trom](#): > > And [those](https://en.wikipedia.org/wiki/Renaissance_Technologies) that can do it successfully won’t tell you how it’s done. Isn’t Renaissance Technologies famous for using arbitrage to get its returns? (That exploits instantaneous differences in prices.) They’re also famously secret as you say, but I’ll bet the one thing they’ve never done in their history is predict stock value ten years in advance. ---
**Author:** ![Trom](https://avatars.discourse-cdn.com/v4/letter/t/958977/32.png) [@Trom](https://boards.straightdope.com/u/Trom)\ **Post date:** [April 29, 2016, 7:35pm UTC](https://boards.straightdope.com/t/facebook-stock/753340/16 "2016-04-29T19:35:21Z")
> [@Exapno\_Mapcase](#): > > Isn’t Renaissance Technologies famous for using arbitrage to get its returns? (That exploits instantaneous differences in prices.) They’re also famously secret as you say, but I’ll bet the one thing they’ve never done in their history is predict stock value ten years in advance. Yes, but I’d say more “relative value” trading than pure arbitrage. Though, they do hold hundreds of millions of dollars of individual stocks, which aren’t positions that can be entered and exited quickly.