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pa28

(6,145 posts)

17. Hey it's cheap now. The PE is around 100!!!

Reply to onehandle (Original post)

Mon May 21, 2012, 08:07 PM

May 2012

I wonder how they came up with the valuation they did.

When a company goes public everything changes and you can't just have really great earnings and be happy with that.

They've priced FB for massive earnings growth over many years and anything less will cause the price to tank. There are some great possibilities to build revenue in the future but it seems to me they don't have a concrete plan yet. Hopefully retail investors who jumped in yesterday are treating this one as a purely speculative play.

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Highlight:

Facebook shares plunge below IPO price [View all] onehandle May 2012 OP

Shocking. bayareamike May 2012 #1

I would expect it to settle out at about $12. $20 at best. bluerum May 2012 #2

"I'd rather have two shares at $19 than one at $38"?? sofa king May 2012 #6

Well ]'ll be a .... bluerum May 2012 #14

Perhaps he meant ozone_man May 2012 #20

I wish I'd known that one all these years. sofa king May 2012 #21

Happy Greater Fools Day!! TahitiNut May 2012 #3

21st century vapor fad stock. n/t RKP5637 May 2012 #4

+1 I called what facebook does, "vaporservice". LOL nt Javaman May 2012 #30

I said that facebook was a big nothing wilt the stilt May 2012 #5

next time make a bet with them KurtNYC May 2012 #38

Wow. I avoided it completely thinking it would probably go nowhere, but dropping this much on the truthisfreedom May 2012 #7

ROFL! NRaleighLiberal May 2012 #8

Boo-hoo, no one "Liked" Facebook. beac May 2012 #9

Lol ! I haven't seen a Wambulance since the thick of the 2008 Democratic primaries....... TheDebbieDee May 2012 #18

Nice that this year it will only be making runs to the GOP convention and other beac May 2012 #22

What does Facebook make? RockyMtnGuy May 2012 #10

Penis enlargement ads. And other Internet search engines are catching up with Google. onehandle May 2012 #11

GM already concluded Facebook ads were worthless. provis99 May 2012 #12

they are data miners may3rd May 2012 #24

How many images of what someone had for lunch can you view? spiderpig May 2012 #35

A Rolodex and its a good one at that IMHO harun May 2012 #31

Same thing with television and radio joeglow3 May 2012 #32

only 11%? Skittles May 2012 #13

I didn't expect that big of a drop, but a drop after an IPO isn't uncommon. Ruby the Liberal May 2012 #15

Faceplant's stock price is down!?!?! Wha???? DeSwiss May 2012 #16

Hey it's cheap now. The PE is around 100!!! pa28 May 2012 #17

Down almost 25% for people who bought at the top. Prometheus Bound May 2012 #19

doubt the "LIKE" it now may3rd May 2012 #23

I shorted it at $28.50 on opening day cosmicone May 2012 #25

I thought it couldn't be shorted for 30 days? Hassin Bin Sober May 2012 #26

It can be done abroad cosmicone May 2012 #28

LMFAO!!!! Odin2005 May 2012 #27

It was priced way off fujiyama May 2012 #29

the bottom is zero magical thyme May 2012 #33

Those three underwriters are pretty creative. They may be able to work something out. Prometheus Bound May 2012 #34

Typical of Wall Street...and I'm not exactly feeling sorry for Facebook's instant milionaires either Brooklyn Dame May 2012 #36

You mean Billionaires (who fleeced those who believed the hype) KurtNYC May 2012 #37