Facebook IPO

#1
I Know this comes quite late, but the debate will never cease to exist. As we all know the worth $500 Bn company, Facebook became public and hasn't seen a considerable rise after it went public . We know facebook is huge billions of users and millions adding to it almost every week, the face of the social networking site has a long way to go!
My 2 questions:

1) But Though the shares are currently available in India, if they were available , would you consider buying it?

2) What do you think is not working for the facebook guy and why is the value of his stocks is going down?

Experts awaiting your valuable replies!

Thanks!
 

Reggie

Well-Known Member
#2
To answer your question - Nope, I would not buy Facebook if it was available in India. The valuation was too high.

The reason the price is floundering after the IPO is due to many reasons, chiefly :

* The IPO size was increased considering public demand, and almost all who applied for the shares got it. So who could they then sell it to?

* The IPO was fully priced and left little money on the table for the investors.

* Facebook has millions of users, but the growth of new users will slow down, even existing users are fatuiged and logging in less. It translates into lower advertising revenue. GM, withdrew 10 million dollars of adspend.

* Social media companies are risky and considered a fad. Remember AOL, Orkut, ICQ

My two bits worth....
 

Sunny1

Well-Known Member
#3
I agree with Reggie

social media are risky. they go into thin air without any warning.

Only thing is if Facebook diverts its business and that business also produces profit.

Till then its No. we cant invest in facebook.
 
#5
as per the current scenario, it seems the FB guy is loosing it to a great extent ! :( :p

friends do you think the over-hyped stocks or IPOs are all-words-no-play types?
does an organisation's years of presence has a greater impact on its sustainability in and the likely response it will receive from the market?
 
#7
I know that this is not the right fourm to ask MF question but i hope some one here will help me.

regarding uti us2002, i have come to know that this scheme also closed and units are converted in uti balance fund.

I had contacted you uti office on nov 2007 and they have informed me that nav of converted us2002 is Rs, 25.90 per unit.

please inform me detail of us2002 scheme and latest nav of the same.

My confusion is that on 30.10.2007 nav was 25.90 whereas uti balance fund nav on same date was 72.85.

please guide me in this matte. I have written mails to uti but could not get the proper reply.
 

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