In Chicago, our local tech-company equivalent to Facebook is Groupon. They have a model that is fairly easy to copy, but a good accumulated database for their daily deal emails and a highly recognized name.
As I recall, the GRPN issue price was ~20. First day of trading closed at 26.11; this past Friday it closed at 11.58 (see chart in link). As a business that used Groupon for a couple of offers, I was not too pleased with them and predicted that their stock would implode. Unfortunately, I didn't put my money where my mouth was by shorting the stock (although I heard that it was very, very hard to borrow shares to short).
An online commentator pointed out: "The banks helping take Facebook public want us to value this 8-year-old upstart at $104 billion, more than Disney or Kraft Foods, though those companies earn three and four times more. That top valuation is also more than 100 times Facebook's earnings last year, versus 13 times for the average company." Also: "In investing, hype is the enemy."
It may go to 50 in the near term, but longer term I'm betting on 20.
posted by 108.71.134...
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- Facebook Stock, Scott Paterson , Sun, 20 May 2012 06:55:14
- funny tweet by my friend..., Scott Paterson , Fri, 25 May 2012 15:22:17
- "Fury Over Facebook IPO Grows, Lawsuits Mount", Bill Homer, Wed, 23 May 2012 09:41:29
- Re: Facebook Stock, C H Tay, Tue, 22 May 2012 21:14:39
- Re: Facebook Stock, Scott Paterson , Tue, 22 May 2012 16:36:59
- Zuck said they need to monetize the mobile apps, AeroBaron, Mon, 21 May 2012 21:23:43
- Fadebook. $20, andym, Mon, 21 May 2012 15:35:02
- I suspect $20 comes first, Notnoel , Mon, 21 May 2012 08:49:46
- This ^, turbocon86, Mon, 21 May 2012 09:43:11
- Re: This ^, Snowmobile , Mon, 21 May 2012 10:00:30
- Facebook Stock -If it hits 50 first below 20 is next, LG Aero, Mon, 21 May 2012 06:06:40
- Not a clue, DE, Sun, 20 May 2012 12:34:46
- $20 - I think they'll be MySpace 2.0, Trev, Sun, 20 May 2012 12:01:24
- Seems all too familiar, Bill Homer, Sun, 20 May 2012 11:47:46
- Depends what they do with the billions received, MI-Roger , Sun, 20 May 2012 11:03:16
- Bubble?, Snowmobile , Sun, 20 May 2012 08:58:31
- Re: Facebook Stock, turbosaab , Sun, 20 May 2012 07:32:10
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