Thread: Facebook IPO: Should I Buy In

I'd stay away.
There's only so much they can grow. Facebooks growth already decelerated from 154% in 09-10 to 88% in 2011. Facebooks profit fell for 2 quarters last year.. compared to rising 92% in 2010. A $100 billion valuation means that its worth 53% of google yet google has 10 times the earnings of Facebook. Plus charging companies and advertisers for pages that you can "like" will hinder growth.

After the hype dies down, so will the stock and you'll be able to see what its really worth.

I'd rather bet on Zynga...looks stupid cheap compared to facebook and has a lot of upside, definitely a lot more room to grow esp if online gambling is legalized again.

There is so much hype and publicity about the IPO many people want a piece. It will probly jump straight up at first. Multiple people have mentioned "pump and dump" while talking about it this week.

hey guys thanks for chiming in. I think im just going to wait this one out because that valuation is way too high and i highly doubt they will hit those numbers...but i am looking forward to Zynga

Originally Posted by King Among Kings

hey guys thanks for chiming in. I think im just going to wait this one out because that valuation is way too high and i highly doubt they will hit those numbers...but i am looking forward to Zynga

I don't know about Zynga man... They're very shady. And their business model isn't working as well as it once did. Plus, they're under scrutiny lately for being a major copycat/unoriginal developer... Zynga's got this impression in the community that they're just a big business, pumping out shit and nothing more. We'll see if this is a lasting business.

I heard a special on NPR about this, and sorry to say, you cant! Only huge money movers like hedge funds and major firms will be able to buy FB.

Originally Posted by Flyinglakland

I heard a special on NPR about this, and sorry to say, you cant! Only huge money movers like hedge funds and major firms will be able to buy FB.

Huh? Anyone can purchase shares during an IPO.

Originally Posted by Forfend

Huh? Anyone can purchase shares during an IPO.

Thats what I thought, but I guess not!

Small bit from a yahoo article explaining it.

http://news.yahoo.com/facebook-ipo-t...015442040.html

"Unfortunately it’s going to be difficult to get your hands on Facebook stock once its available. If you are seriously interested, you need to create a brokerage account and file an “indication of interest” regarding Facebook stock. Remember, it will be months until Facebook is officially a public company you can buy shares of.
And there’s only going to be so much common stock available, and it’s going to be priced high. Buying low is a privilege for a select handful of investors—and if you’re reading this, you are definitely not one of them. The fight for available retail shares will be something of a mad scramble. So…
Should you (try to) buy?
Really, big IPOs are only big for a few people. Those people are usually the owners and early investors in the respective company.
Also consider the fact that many big IPOs underperform. Even if you go out of your way to invest in a mutual fund expected to be getting a piece of Facebook, it won’t necessarily translate into big bucks. In fact the odds are that you’ll come away with a very modest increase in your money at best.
So despite the warnings (and there are plenty of them), if you’re still interested, these are you best option:
Mutual funds
There are approximately 50 mutual funds that own shares of Facebook, and they include Morgan Stanley funds Focus Growth and Capital Opportunity, T. Rowe Price funds New Horizons and Global Technology, and Fidelity Advisor New Insights funds."

Doesn't say you wont be able to buy, just that you will probably need a LOT of money to play. $300-600 a share is stupid money. You can buy all the stock you want but if you don't sell it, you wont make or lose money

I reckon its not going to work and they want to cash in now.