31–40 of 105 posts
Earlier quoted context omitted.
here's the pricing chart for today [1]. What makes you think it was supported -- the flat line beginning at 334 pm? [1] http://finance.yahoo.com/echarts?s=FB+Interactive#symbol=fb;... ;
Yes, that and the rally at almost exactly that level a little before 12pm
I really don't get why FB is valued that much. If you look at their revenues, net income, quarter-to-quarter growth, the stock should be at $5.50. Seriously, look at GOOG, compare it to FB. You must be insane to buy FB.
Buying stock is generally about what you think will happen in the future, not what has happened in the past.
Speculating is about what you think will happen.
Buying stocks in a business is about buying into something that has shown to be profitable, and stable. Enough to exchange your hard-earned money for it.
Read "The Intelligent Investor" by Benjamin Graham to gain a better picture of what investing really is.
(EDIT: Earlier this title read "barely above it's IPO price". It definitely used this word, "barely". My comment is now moot. I'm leaving it due to the replies.) what is with this title? It sounds like it's saying sullenly, "a year later, Facebook is barely above its IPO price". OF COURSE IT'S TRADING AROUND ITS IPO PRICE, GIVEN THAT IT'S JUST IPO'D. I mean, of ALL the times a company could be trading at its IPO pric…
The more interesting thing is: "It didn't plummet like some people were expecting!!!"
On the one hand, this indicates that the underwriters did a good job of maximizing FB private shareholder value on the IPO. On the other, the shape of the daily curve looks like it was supported at that level artificially. Even if not, it doesn't look like there's a lot of market confidence for it at this level.
More evidence of artificial support, a tweet and screen capture from Paul Kedrosky: http://lockerz.com/s/209964861 It's easy to overlook the graphic; it's the thin black bar with faint text. It shows: Bid (size): 38.00 (x9999900) Ask (size): 38.01 (x146300) ...and the tweet referencing it was about 20mins before the close. The earlier tweet was: @pkedrosky: Watching certain underwriters try to keep certain IPOs above…
(EDIT: Earlier this title read "barely above it's IPO price". It definitely used this word, "barely". My comment is now moot. I'm leaving it due to the replies.) what is with this title? It sounds like it's saying sullenly, "a year later, Facebook is barely above its IPO price". OF COURSE IT'S TRADING AROUND ITS IPO PRICE, GIVEN THAT IT'S JUST IPO'D. I mean, of ALL the times a company could be trading at its IPO pric…
Saying that +$0.23 in a day means $230 per 1000 days makes no sense at all. What happens on one day, especially when it's the IPO day, has no bearing at all on what will happen in the next trading day - or at least the open to close difference doesn't tell you anything, the volatility along with some other numbers (at my last firm we called them skew, mom and dad but they're all numbers which indicate the directionality of the vol surface) might give you some indications.
My gut feeling, and this is based on the time I've spent in the financial world and especially with options traders, is that today was good for pre-IPO investors who wanted to sell out of their positions, but that any retail investors who bought in on the IPO are going to regret it in the medium term - not least of which because the balance sheet just doesn't support the market cap.
On the one hand, this indicates that the underwriters did a good job of maximizing FB private shareholder value on the IPO. On the other, the shape of the daily curve looks like it was supported at that level artificially. Even if not, it doesn't look like there's a lot of market confidence for it at this level.
Facebook's too big to fail!
I really don't get why FB is valued that much. If you look at their revenues, net income, quarter-to-quarter growth, the stock should be at $5.50. Seriously, look at GOOG, compare it to FB. You must be insane to buy FB.
On the one hand, this indicates that the underwriters did a good job of maximizing FB private shareholder value on the IPO. On the other, the shape of the daily curve looks like it was supported at that level artificially. Even if not, it doesn't look like there's a lot of market confidence for it at this level.
More evidence of artificial support, a tweet and screen capture from Paul Kedrosky: http://lockerz.com/s/209964861 It's easy to overlook the graphic; it's the thin black bar with faint text. It shows: Bid (size): 38.00 (x9999900) Ask (size): 38.01 (x146300) ...and the tweet referencing it was about 20mins before the close. The earlier tweet was: @pkedrosky: Watching certain underwriters try to keep certain IPOs above…