Comments on: Wall Street got the Facebook IPO it deserved

By: Tejash

Tejash — Wed, 13 Jun 2012 20:07:23 +0000

Comcast claims Xfinity sipmly isn’t part of the Internet since the traffic is being feed over their network from a server ON their network and never flows over he internet so should not be counted in the cap. The problem with this claim is that if I do 25GB of email (to/from Comcast Servers) to/from other Comcast Users (so none flows over the Internet and thus does not incur any gatewaying with the internet) and browsing of sites HOSTED ON the Comcast network I am being hit with 25GB of usage not getting the free ride that Xfinity does.

By: chuck

chuck — Tue, 22 May 2012 22:03:31 +0000

Facebook going on the stock market never made sense to me, the whole stock market is driven by growth, companies that sell well but don’t make more profits every year, enter new markets every year will see their stock price stagnate. Facebook’s growth is already at its end.

The 100 billion evaluation is just ridiculous, at 85 billion now it is still ridiculous, Facebook’s market cap/revenue is >20 now, which is outrageous. Tech companies usually go <6.

Facebook should be around 20 billion when looking at its revenue, a share price of about $8 seems more appropriate. And with dwindling growth, user malcontent, lack of monetization of mobile, growing numbers of inactive users it will just mean its share-price will fall (hopefully) below the bankruptcy idea level.

All I can hope is that the stock plumets into a penny stock and Facebook goes bankrupt.

By: Stacey Higginbotham

Stacey Higginbotham — Tue, 22 May 2012 19:52:00 +0000

That’s true. There are two issues here. One is the question about the pros and cons of relying on a “pop” and the other is Facebook’s business and fundamentals. But what no one should doubt is FB walked away with a lot of money.

By: Ash

Ash — Tue, 22 May 2012 15:36:55 +0000

I think your story points out a real problem IPO’s have with media and tech blogosphere hyping a company and then to only tear it down when it doesn’t “pop”. However, if you look at the fundamentals of Facebook, they haven’t found an effective way to monetize their 900 million users (probably more like 200-500 million when you exclude one time accounts and spammers). With a PE over 106 it’s a higher risk investment. Not a great stock for investors at the moment. Mark did a great job utilizing the market to raise capital for his company.

By: Sasa Marinic

Sasa Marinic — Tue, 22 May 2012 07:30:17 +0000

Reblogged this on Sasa Marinic and commented: Leading to yet another internet bubble?

By: Eddie

Eddie — Tue, 22 May 2012 04:20:35 +0000

Great post! I love this excerpt the most:

> Or maybe we all just got worked up
> into a frenzy inside our technology
> and Wall Street bubbles and the rest
> of the U.S. just let us know that
> even with 900 million members, Facebook
> may be a real business, but it’s not all that.

Indeed, there is a lot of America (and the world for that matter, cough cough, Copernicus) that has other fish to fry and real life to worry about day to day. For example, the NATO protests in Chicago (with Chicago being neither in the bubbles of the Vally or Wall St.)!

By: dagamer34

dagamer34 — Mon, 21 May 2012 22:19:56 +0000

Good to see the market didnt get bitten by the hype. People who stayed out avoided loosing their money today.