Facebook Stock

This is what I gathered all along. One dude said that they hit their peak before they even went public which really ruined them. The company needs to vastly improve their revenue or it will just be junk.

 

Facebook's IPO is currently 26.81 according to google, i honestly do hope you wernt telling the truth that you bought $4,500 worth at $41 a share... :/

 

The problem with the Facebook stock is that:

1) NASDAQ screw up from earlier on (when it was released). They're going to be spending hundreds of millions paying back the angry investors; forget how much.
2) Their mobile application needs to be developed, they need to tap into that to make profit.
3) Some people think there's a tech/social media bubble (kind of like the housing bubble) going on so there's just not that much investor confidence.

It'll be interesting to see what happens. Facebook could be waiting on releasing updates for FB mobile until they perfect it so it could potentially still be very profitable.

 

I'm glad none of you put any serious money into it as a long position, I took the other route and made quite a good return on FB as a short sell.

My reasons for the short sell (sold at $35.20 bought back at $28.25, therefore making $6.95/share of which I borrowed 3,000):
-After hiding the analyst projections from many of their buyers, it says something about the culture at Facebook and companies with that kind of culture always end up as the target of some massive fines and lawsuits.
-The valuation was way too high when they could easily be de-throned as the go-to social media site as easily as myspace.
-Mark Zuckerberg himself sold $1 billion worth of his common stock on the opening day, saying that even the CEO doesn't have faith that the stock will rise.

These and a few other reasons made me fairly confident that the price had a long fall ahead of it. Turns out I made a pretty wise call and ended up making around $20,000.

ALSO,

I agree completely. Facebook has nearly 1 billion users, and if they want to succeed the new question for them has to be "How do we generate revenue from our current users?" as opposed to the current "How do we get more users?". The advertising revenue model used by Facebook is not going to give it the revenue it needs to survive long-term let alone make a profit for investors in today's social media abundant internet landscape. So they tried to create an additional revenue stream through the "Facebook credits", but I fail to see the value added by these, because they are mainly used for facebook game in-app purchases, and though people do perform in-app transactions, it is on a very small scale, and the revenue from Facebook credits as they are now will hardly make a dent in Facebook's income statement. What they SHOULD do is look into more creative ways for users to use these Facebook credits if they want to turn them into a real revenue source. Facebook needs to emphasize innovation of new product lines and features that will allow them to capitalize on their huge user-base. Until they are able to do this, don't expect to see me buying FB as a long position anytime soon.

The share price was 26.81, IPO = Initial Public Offering, which occurred on may 18th. Also, they had no way of knowing that the stock was going down so hard on the day of the IPO (even though there were many signs of this happening, see above).

Yeah the NASDAQ failure was pretty unexpected and unfortunate for NASDAQ. NASDAQ will be paying $40 million to make up for the losses incurred by the system failure. $13.7 million of this will come directly from the profit NASDAQ made on a short position on FB stock (I wasn't the only one with this idea, NASDAQ and the IB's that performed FB's IPO also took short positions), and the rest will be in the form of subsidizing trading fees for the institutional clients over the next six months.