FACEBOOK Crashing down 33%

Brownout

Joined Jan 10, 2012
2,390
I understand what your saying but Google and FB aren't even in the same leagues. Google is a productive biz that makes money in many many many arena's from phones, OS's, mail, web hosting, PPC, datamining, VOIP, youtube, and if you count gmail accounts have a much larger userbase. And that not even counting their mapping software and crawler. Where as facebook basically has half the users they claim, and no proven way to turn that into actual money like google has. And has suffered such bad publicity over this IPO launch they might not even recover because of how many people are pissed off they went Big Brother. Like I said and you said FB's shares are so high its so diluted the only think keeping the stock into double digits is the banks buying back the stock people are selling off. Everyone seems to thinkg $9 is the buy price for FB. Not to mention the illegal stuff going on with them changing the numbers over the weekend after launch and then just informing preferred clients and not the public. The 1%ers found out Sat. The public found out Wed. I'm really excited to see what happens, as everyones saying this is a first for the stock market. NASDAQ's, FB, all the underwriters, and everyone involved with the ipo launch is getting class action law suits filed against them every couple minutes all around the world.
Not quite relevant to my post. I illustrated how the share price didn't mean much. I did not compare the two business models. IE, it doesn't matter if the stock is in double digits. Price analysis is all about the ratios. P/E of 50 is exeedingly expensive. Even more expensive then Google's $600 per share price. Institutional investors almost never pay any attention to the price, looking instead at ratios. The price reflects sentiment that the company will grow. Or else, it's an indicator of another bubble starting to form.
 
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