facebook (FB) IPO

[U4K61]

Facebook's Road To IPO

Facebook goes IPO This Week explained

[U4K61]

What is a Stock, IPO.
So... will facebook going public be the next Google or Apple or just a flash-in-the-pan?
Six numbers every invester should know.

Some interesting facts:

PE Ratios = Market Value per Share/EPS (Earnings per Share)
EX: If a stock is priced at $24 per share and earnings are $2 a share, then the P/E ratio is 24/2 or 12. This also means, that if earnings are constant, it would take 12 years to pay back shareholders. FB which is valued at about $100 billion and currently has net earnings at about $1 billion, so the PE ratio is a very high 100%. Apple for example has a P/E ratio of 25%.

Nevertheless, the higher the P/E ratio, the greater the confidence that investors have that the company can grow and deliver profits on their investments. If FB stock remains constant and earnings go from 1B to 4B, the P/E ratio goes to a more palatable 25%.



Number facebook of Users:
2009 - 197m
2010 - 555m
2012 - 901m (1st quarter)

User worth:
2010 - $0.79
2011 - $0.96
2012 - $0.97

Expected revenue by 2014 - 9.8B
R&D - $900m over the last 5 years
100B = $32.38 a share.
User Data: Bloomberg.

[ScarredLungs]

Facebook should've done this long ago. They are on the downhill now.

[U4K61]

Originally Posted by cvm

Facebook should've done this long ago. They are on the downhill now.

How so?
FB IPO, May 17 - $38

[U4K61]

After not being able to buy on opening day; after weeks of scandalous reports of overvalued stock that dipped 32% along with technical glitches and other mishaps, and a worsening european debt crisis, I took the plunge a few days ago. I purchased shares at around $27 after they hit a low of $25.87 on June 5. No regrets so far.

June 18, facebook acquires Face.com
July 6, invests $450 million in undersea fiber-optic cable that will go from Malaysia to South Korea and Japan (technabob).

FB - $29.32

[Elandyll]

http://finance.yahoo.com/news/facebo...143200785.html

After the first release of blocked shares today, Facebook (FB) hit a new all time low of $19.87/ share (at Market close). Practically half its value from when the company's stocks started trading publicly.

To avoid flooding the market with too many shares at the same time, 5 different "locks" have been put in place. Today was the end of the first lock, when many venture capitalists and Prime investors (the kind that got first dibs in May) were finally able to sell up to 271 million shares today.
In November, it's a major dump that'll happen, with the release of no less than 1.9 billion shares.

An analyst seems to share my views: The title will probably stabilise sometime after that (probably in 2013) around $10/ share. But even then, Facebook will still have to prove it can

1) Make money on its user base
2) Make a solid transition to the App/ Smartphone world

If FB does both, then the shares will regain some ground, but I do not think we will see the shares back to their introductory price any time soon -if ever-


I feel bad for all the little investors ...

[U4K61]

Originally Posted by Elandyll

http://finance.yahoo.com/news/facebo...143200785.html

An analyst seems to share my views: The title will probably stabilise sometime after that (probably in 2013) around $10/ share. But even then, Facebook will still have to prove it can

1) Make money on its user base
2) Make a solid transition to the App/ Smartphone world

If FB does both, then the shares will regain some ground, but I do not think we will see the shares back to their introductory price any time soon -if ever-


I feel bad for all the little investors ...

I agree, the 'fully valued IPO' was a joke with PE ratios of 100:1, meaning if the company made one billion a year, it would take 100 years to pay back the shareholders. The average PE is 25:1 After initially making some money, I'm in the red on this one.

FB - $19.87