Are you going to buy stocks in Facebook?

[Yeki89]

Facebook Sets I.P.O. Price Range
Facebook on Thursday set the estimated price for its initial
public offering at $28 to $35 a share, according to a revised
prospectus. At the midpoint of the range, the social
networking company is on track to raise $10.6 billion, in a
debut that could value the company at $86 billion.
Read More:
http://dealbook.nytimes.com/2012/05/03/facebook-to-set-
target-after-market-close/?emc=na

[Dan]

$86 Billion, wow.

[YudiG]

usually a good idea to wait a couple weeks for it to settle and then get in...i do think they have a good model to strike a profit and will be around for some time making money as they go along...

[Dan]

Until it becomes uncool and turns into the next myspace in one of the biggest implosions in history.
But hey, maybe it can stay cool forever!

[YudiG]

Until it becomes uncool and turns into the next myspace in one of the biggest implosions in history.
But hey, maybe it can stay cool forever!

Facebook though has learned from the previous trials I believe. Sheryl Sandberg has some brainpower and has moved quickly and successfully to monetize FB.

They have 500 million users who log on everyday and it's a powerful way to do targeted marketing...I think there is a little more bounce  in FB than it's predecessors...not to mention the apps and how businesses have turned to it.

[boruch]

I read somewhere that they have close to 800 million users now. My concern is; how can they keep that type of growth going? They don't produce anything, like let's say AAPL, who can introduce a new or improved product. What are they going to do once everyone on this planet has an facebook account ?!

[sky121]

I read somewhere that they have close to 800 million users now. My concern is; how can they keep that type of growth going? They don't produce anything, like let's say AAPL, who can introduce a new or improved product. What are they going to do once everyone on this planet has an facebook account ?!

There are some pretty smart people running theyou company. Im sure they have lots of ideas they are working on.

[boruch]

I'm sure they do too. It would be a really bad idea to prepare a IPO if they didn't

Anyhow, it's just not my cup of tea. I believe they should have gone public earlier. Just my opinion. But I'm no professional investor so don't take me too seriously.

[AJK]

I read somewhere that they have close to 800 million users now. My concern is; how can they keep that type of growth going? They don't produce anything, like let's say AAPL, who can introduce a new or improved product. What are they going to do once everyone on this planet has an facebook account ?!

Do you have any idea how many bucketloads of cash Facebook can earn with access to even their current 850 million users? Let alone 1 or 2 billion.

Their revenue more than doubled in 2011 to nearly $4.3 billion (up from $2 billion in 2010). Their advertising model is unlike anything else available to marketers. Period. For an article that completely changed my view on the prudence of an investment in Facebook, see here.

No one can touch that sort of granular marketing. No one.

[boruch]

yeah, but once again: how to continue such growth ?!

[AJK]

Once again:

Do you have any idea how many bucketloads of cash Facebook can earn with access to even their current 850 million users? Let alone 1 or 2 billion.

You think every business who currently spends on marketing is doing so on Facebook?

You think every business who currently spends on Facebook marketing is doing so 100%?

[springles]

For an article that completely changed my view on the prudence of an investment in Facebook, see here.

No one can touch that sort of granular marketing. No one.

I dont fully understand that article.  How can Facebook use that information to create advertising on other sites if their users arent currently logged in to facebook.  On facebook they can use the info from the users input to target ads.  But the article says that they will eventually use their info to have targeted ads on other sites and I dont believe that is likely without creating huge legal and privacy issues (much bigger than their current privacy issues).  Also, google is able to put together an immense amount of info about their users based off of searches and web sites visited thru google. 

One huge advantage that google has with its adsense is that when people are using google they are often looking for products and things.  Advertising works because it gives them what they are looking for.  However, when people are on facebook or other similar sites they have less interest in the ads, the ads just get in the way of their "socializing."  Google and its purpose is just inherently built for advertising to work in a way that no other model ever has. 

I hear why you think that facebook has a strong future and I dont disagree with that, but there is no way that google fears facebook.  Now if google was able to find a way for google+ to really take off then facebook would have what to be afraid of (I doubt this will happen).

[YudiG]

Of there 900+ million users, some 500 million log on every day...no, not every business uses FB to advertise these days but targeted marketing is proving itself to be increasingly effective especially within social networks.

We all know of the concept of 'Chavra Chavra is lei'....

There is money to be made on App sales and it's a product that will surely evolve over time but one that has some punch to it and some brainpower behind it as well.

I wouldn't bet the ranch on it but I think there is some investment money to be made...

[Mocha]

Throughout my schooling every professor I had kept on warning us not to buy into a company just because it is the hot thing. If the company can't put forth a concrete plan for future growth then you can bet the stock won't perform nicely. To be frank I have a lot more trust in a company like google where the list of its products and developments are forever expanding. Mr Zuckerberg built himself a nice company but I don't see it to be dynamic at all.
More new users=more money in future advertising? Ok fair enough but how many more users are there going to be in the next 10-20 years? This is without the assumption that Facebook could easily be a thing of the past in 5 years time. As a long term investment I'd be wary.

[mercaz1]

it is scary how much info they have on their users

might buy a few shares

[HelpMe]

I will short it if it spikes after the open.

[YudiG]

at 99 times earnings...i'd wait until it becomes a bit more realistic

[Ergel]

I will short it if it spikes after the open.

You should buy it at open. Sell when it spikes and then short it

[HelpMe]

You should buy it at open. Sell when it spikes and then short it

I have no idea if it will spike at the open.

[Ergel]

I have no idea if it will spike at the open.

I believe it will. These dumb ipos always do when they open