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Trading in Zynga halted due to 13% drop and a circuit breaker tripped.
Its price seems to have been corrected to $7.80 which is down 5% on the day but not as bad as before. I wonder if someone just keyed in an order wrong?
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So are we rooting for the fall of Google, too?
I respect Google. The search engine they built was made out of the hard work of their own employees. They didn't build an empty bucket and wait for everyone else to do the hard work and fill it up. Sure, Facebook is full of clever hacks and nice features but the gas in that engine is the data happily supplied by their users, for the low low cost of free.
i.e. Super fast and easy to setup account where I can immediately buy some shares?
This is like a NASCAR race, many (most?) of us watching secretly hope for a spectacular crash. It's wrong, but the potential of schadenfreude is very tempting.
I don't understand why any internet entrepreneur would wish for the Facebook IPO to fail, secretly or not.
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Well, that is called playing the stock market. No, I'm much more concerned with the bets the fund in which my dad's union's retirement pension plan is coming from.
I'm no investment pro but FB's valuation seems unjustified to me, so I'm searching around for explanations. Where is this additional demand for these shares coming from? The best explanation I can come up with is that FB benefits from its massive base of engaged users. I imagine there are a great many individual investors who are torn between wanting to participate in "internet tech" and wanting to not invest in what…
Microsoft also sold products, and had a very strong revenue stream from that. Hype helped MS grow, but their core business fundamentals have traditionally been pretty strong.
Facebook seems overvalued by at least 300%, maybe more. A quick look at tech companies that have about $100 billion market cap(like Facebook), and the closest comparison I can come to is Oracle. Unfortunately, the comparison doesn't look good for Facebook.
Oracle's revenue for 2011 was around $35 billion, which is 10 times Facebook's. Net income was around $8.5 billion(from here: http://www.oracle.com/us/corporate/investor-relations/financ... ). Facebook, according to their SEC filings, had a net income of $1 billion in 2011.
I think that Facebook's valuation is driven entirely by hype, which really means that the stock should perform quite well for the next 30-60 days, until Q2 earnings are released. At that point, I have a feeling that it will drop when investors realize that FB isn't pulling in nearly as much money as their stock is indicating.
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Its price seems to have been corrected to $7.80 which is down 5% on the day but not as bad as before. I wonder if someone just keyed in an order wrong?
My guess is FB bottomed out and is now trending steadily up, so "panic mode" has subsided somewhat. Also, perhaps some big players saw Zynga at near $7 being quite a value so they swooped in.
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My guess is FB bottomed out and is now trending steadily up, so "panic mode" has subsided somewhat. Also, perhaps some big players saw Zynga at near $7 being quite a value so they swooped in.
It doesn't appear to be trading though, just a price correction.
Source: http://www.reuters.com/article/2012/05/18/us-zynga-trading-i...
It definitely wasn't a mistake the first time, I watched it tumble from $8 down to $7.17 in reasonable intervals
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Actually most web 2.0 startups and especially social startups will be positively affected from an investment perspect, from a successful facebook start.
And if the FB IPO ends up being perceived as primarily a massive transfer of wealth from enthusiastic well-meaning small investors to the brokers and investment bankers?
People who put money into Facebook early were hoping to get rich(er); they didn't do it out of the goodness our their heart. It's an SV fallacy that angels are, well, angels.