[CMiller199]

Am i the only guy that invested in facebook stupidly?

[ProtoBaller1991]

I was waiting for a thread about facebook stock.

and yes.

[Subterfuge]

Never invest in IPOs. IPOs are mainly for the private investors to sell off their stock and make bank.

[Subterfuge]

You can sue Facebook, but why did you buy?
Commentary: Gamblers complaining that the game was rigged

By MarketWatch
Last Update: 11:47 AM ET May 23, 2012

NEW YORK (MarketWatch) — And on the third day, the market wailed, the shares rose and the lawyers sued.
So went the morning trading session on the Wednesday after Facebook-pocalypse. As the trading session reached the midway point, Facebook Inc. shares showed a 3.7% gain. It was a minor relief to those who bought the initial public offering near its offering price of $38. After all, the bleeding had stopped for now.
But for investors who snatched up shares on the first day, tiny gains after the shares had fallen by nearly a fifth in two days, was hardly fair in their eyes. And so, the class action attorneys began rounding up the aggrieved to press Morgan Stanley , Goldman Sachs Group Inc. and J.P. Morgan Chase & Co. among others, for compensation.
Their argument will undoubtedly be that they were deprived of critical information that favored clients received as the IPO drew near. If it’s true, they probably should receive some action. The trades could be wiped out or investors made whole.
Still, there’s something unseemly about customers complaining at a gambling table that the game was rigged against them. There were plenty of less-nefarious reasons that Facebook shares plummeted. The massive increase in shares to be sold, the darkening outlook on revenue and advertising, the mind-boggling valuation ($100 billion, 100-times earnings).
Unfortunately, you can’t sue people for being suckers or greedy. You’ll note these people never sue when their investments go up.
Moreover, we live in a time when Wall Street’s mistakes are so pervasive and foul, the industry never gets the benefit of the doubt.
Today, the perception at least, is that Wall Street is only dependable when it comes to fouling things up, playing favorites, taking handouts and acting offended when people complain.
The monumental Facebook offering was so visible, so anticipated, so obviously set up to disappoint — you have to wonder why so many investors put themselves in that position.
— David Weidner

Buy into an IPO at 100 times over earnings? That is freaking scary high. For your information there are technology companies, that make way more financially, that have a smaller price and a bigger discount. You get nothing for holding on to the FB stock either. There are no dividends. Maybe if the stock market was not falling because of greek debt, people would inflate the stock to more asinine levels. It might shoot back up, but there is no reason for your stock to go up other than popularity.

[SpankyCocker14]

Originally Posted by CMiller199

Am i the only guy that invested in facebook stupidly?

I almost did... $10,000 worth... Glad I didn't do it.

Sorry for your loss. I was almost in the same boat.

[yuik (Banned)]

i did a few weeks after. in a year this stock will be 20% over its ipo price. mark my words old guys

[Calin]

There is nothing wrong with investing in IPO's also depends on what you mean. Like did you get into the IPO at the offering price or did you pick up secondary shares. If you can't get in at the offering price, then don't even bother thinking about it. To check, just look at what firm you invest in, it is a discount firm (E-Trade, Thinkorswim, TD Ameritrade, Charles Schwab), chances are you are a sucker if you invest in IPO's.

Now with Facebook, the problem they have is that over 80% of their income is from display ads on desktop computers, 15% is games and 5% is misc. One of the largest gaming platforms just reduced its earning guidance down 90%. 80% of the time on Facebook is through mobile devices of which Facebook earns nothing on. You have a CEO that doesn't care about the bottomline of the company (why should he, he cashed out 1 billion at the offering), and he owns 56% of the voting rights.

Bottomline, Facebook is overvalued. Only way to change that is to fire the CEO and replace or have him change his mind on earnings. Or come up with a mysterious way to capitalize. People mistaken their 900 million user base and confuse it with earnings.

Someone once had a business plan. This pencil cost me 50cents, if I can sell it for 1 dollar and I sell 2 million pencils I can make 1 million dollars. Yea that won't work.

One thing to remember, stocks follow earnings.

[Subterfuge]

What do you think of SNE making 80 billion in revenue but being priced around $12, twice below facebook's value. .50 price to book ratio currently; the book value is $24.54. Last time I saw the Sony P/E ratio it was around 2. Over the course of 2 years it lost approx 8 billion in net income which is why the low valuation. Japan's tsunamis and the hacker attacks took it down.

[doless]

1000

[doomsday57]

Facebook has no product what are they going to make money at adds? Well thats great but what happens when another site comes out with something more people like? Then facebook drops

[PillsburyDoughboy]

Just to echo, nothing wrong with IPOs. Just dumb to invest in a company that does not make money, has no solid monetization plan, and will probably become a ghost in 5 years when something better comes along.

[ProtoBaller1991]

Originally Posted by PillsburyDoughboy

Just to echo, nothing wrong with IPOs. Just dumb to invest in a company that does not make money, has no solid monetization plan, and will probably become a ghost in 5 years when something better comes along.

pretty much. It's like some people never heard of myspace.

[phyl6058 (Banned)]

I don't think so investment in facebook stock, let you down in market. This is very good to invest in facebook this will give profit hold it.