Thread: What do you guys think about FB going public?

What about shorting? Seems like the majority of people are in agreement about seeing it fade/tank down.

saw it open at 42 now its abuot 40.29

Want to know how much they are making: News Headlines

Trading at $40 and went below for a little bit.

Damn, someone could've made some serious $ shorting. It had 4pt dips within the first hour.

Originally Posted by DanielGonz

Damn, someone could've made some serious $ shorting. It had 4pt dips within the first hour.

It's practically impossible to short IPO shares. In general the shares are being sold by underwriters and institutional holders to the "general public". The settlement period is 3 days and someone has to own the shares being lent. Even after the 3 days, finding a lender is next to impossible. If you do find one though, the potential gains would not be cost effective and will definitively be risky.

I'm waiting for Facebook to get to the mid 20's to open a position and be ready to DCA. I think this is a company with incredible potential. It will be up to them to expand their revenue streams but they have so much information that I think they can eventually be a $100bn+ company.

Originally Posted by DanielGonz

Damn, someone could've made some serious $ shorting. It had 4pt dips within the first hour.

as AXL explains above, it's impossible to short it. you can even look at Groupon - you can borrow the shares but, as of a month ago, you'd need something like a 50% drop just to break even. it's not a good bet.

- chuck

Originally Posted by DanielGonz

Sorry but I 110% disagree. What is facebook's business plan? How do they generate revenue? Simply from advertisements. That's not enough to be even remotely talked about in the same sentence as google.

i'm confused by your analysis - where does 95% of google's money come from?

oh, yes, ads.

- chuck

that said, the stock is priced for perfection - those in the secondary market have been buying at more reasonable prices for the past 3 years - writing the history we see, dumping their shares to the public so they can cash out of the story they wrote.

- chuck

Originally Posted by DanielGonz

Sorry but I 110% disagree. What is facebook's business plan? How do they generate revenue? Simply from advertisements. That's not enough to be even remotely talked about in the same sentence as google.

Facebook has either reached maturity and is going to sit on the gold mine of information they have on their hundreds of millions of active daily users OR facebook is in their infancy and is going to make use of their users information to make a ton of money. If you had the type of information that facebook has about all these people do you think you could find a way to make a few bucks off of it?