Stock Market

[Black Diamond]

My friend is the new CIO at JP Morgan

[DS1119]

I blame the Greek teachers.

[81]

I blame the Greek teachers.

fuckin...pay your bills.

[81]

My friend is the new CIO at JP Morgan

if they have a few more dollars to lose, let me know.

[rick1zoo2]

ok, help me understand this: the Facebook IPO is now estimated to raise $16B. I assume that the value of Facebook is mainly derived from future revenues, which I still don't quite understand how they are generated and to the magnitude that would warrent such a huge value. So other than the fact that it is a hot company right now, which is driving up the value, how can anyone think that this would be a good long-term investment?

Second thing I don't get is what do they need $16B for? It's not as if they are building massive factories or facilities. If they go bankrupt, was assets will they have to sell off to creditors?

[81]

looks like about half is going to current owners that are selling. zuckerburg or whatever his name is getting over a billion of it. some artist dude is in line to get 200M+

if you are bored and want to read about it

http://www.nasdaq.com/markets/ipos/fili ... id=8218637

in Q1 of this year, 82% of the revenue was advertising, with the rest being payment processing for facebook purchases (this farmville).

seems like people are over paying for facebook at these levels. i dunno...

[rick1zoo2]

it just looks to me to be overvalued. at the end of the day, no physical plant other than some data centers and servers and no real product that is being sold or produced.

[Black Diamond]

it just looks to me to be overvalued. at the end of the day, no physical plant other than some data centers and servers and no real product that is being sold or produced.

Who cares? It's new and shiny and I want one daddy!!

[81]

it just looks to me to be overvalued. at the end of the day, no physical plant other than some data centers and servers and no real product that is being sold or produced.

i think it's over valued as well, but not because they don't produce a physical product. lots of companies don't produce anything physical. just look at google, or microsoft, or your local cpa.

[rick1zoo2]

true.

but, f facebook

[rick1zoo2]

ok, I am getting a better idea of it:

http://www.cnn.com/2012/05/16/tech/soci ... ?hpt=hp_c1


still: f facebook

[FenwayFaithful]

I'll prob add FB to the portfolio once it goes down in late Q2-early Q3

[81]

are we in a second .com boom/bust cycle

just saw they are saying pintrest is worth around 1.5B

[Black Diamond]

are we in a second .com boom/bust cycle

just saw they are saying pintrest is worth around 1.5B

Like we need this over our heads at this point in time...

[81]

are we in a second .com boom/bust cycle

just saw they are saying pintrest is worth around 1.5B

Like we need this over our heads at this point in time...

sounds like facebook is going to be valued at something like $106B when this is all done. that give you a P/E of 106, and a P/S of 28.6