Thread: Facebook IPO: Should I Buy In

Ok if this thread has been done then sorry for the repost, but i need some clear advice from people who WON'T make any money off my decision. As you all know Facebook is about to IPO and im seriously thinking about snagging a couple shares. But a lot of people are saying stay away, and i kinda get why they say that, but what say you L4P.

Im willing to risk 5k into this IPO just to see what it does, but im not into throwing money away, so i need to know what im walking into. Im highly nervous that this could be another GOOGLE and if thats the case, then i definitely want a piece.

Google had an endless amount of potential growth when they went public. I feel like Facebook has already had their growth. However, facebook has just started to monetize too so who knows. I'd stay away.

GOOG went public at a $23B valuation. They're now sitting at $190B. GOOG just reported net income last quarter that's almost as much as FB's gross revenue for all of 2011. How likely do you think FB will grow from a $100B valuation?

Nope, i will be on other tech stocks though. Whole sector will see an upside. IMO

Originally Posted by fusionstorm

GOOG went public at a $23B valuation. They're now sitting at $190B. GOOG just reported net income last quarter that's almost as much as FB's gross revenue for all of 2011. How likely do you think FB will grow from a $100B valuation?

This is honestly what concerns me the most, because i dont think FB can sustain this type of growth. I have an uneasy feeling that this may be another pump and dump scheme, but i still think theres money to be made. Perhaps shorting the hell outta the stock...

I would stay away from it initially as well.. But here is some food for thought, I called my broker two days ago and asked to get 50,000 shares of FB upon IPO. He told me he could allocate me 100 and I'd be lucky to get 50 :-/

Way too much hype for me my friend. I wouldn't advise it.

Operating expenses are growing faster than revenues. FB says it wants to be a blue chip stock, but I just don't know if that is in the future. With 850 million users, one has to think that the growth will have to slow and the y/y expenses will start catching up. If FB is valued at 75-100m like analysts are saying, it's PSR will be way higher than the highest growth stocks out there such as AAPL.

If FB achieves a $100B valuation when it IPOs, then here's what to consider when determining the prospects for future growth in value:

1) if the stock then increases in price by 50% to achieve a $150B valuation, FB would be more valuable than ORCL.
2) if the stock increases by 100%, FB would be more valuable than GOOG and would be in the Top 10 of most valuable companies in the world.

If you look at the revenues and net profitability of those companies compared to FB, it's obvious something is wrong with this picture......

Damn I don't know bro. You sure you want to go that large??