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Facebook trades under $30, down 7%+

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Re: Facebook trades under $30, down 7%+

#11

Post by cjrp »

ddet wrote: post #6
badusername wrote: post #3

Earlier quoted context omitted.

I assume it was financially healthy for a very small group of people within Facebook. Most of the employees would be on lockdown before they can sell their stocks on the public market, no?

I am assuming they have to wait 6 months, by then FB will not be worth much compared to their strike price.

3 months - http://blogs.wsj.com/digits/2012/05/24/facebook-lock-up-expi...

Re: Facebook trades under $30, down 7%+

#13

Post by benjaminwootton »

ddet wrote: post #4

FB IPO is bad for the startup world

Agreed.

I wonder how much of the current froth is based on people trying to be the next Facebook or Instagram?

If Facebook takes off and justifies their early valuation, the startup/angel/incubator/VC world would go into the stratopshere.

If it continues to languish, people are going to be much more skeptical in making investments and even starting web based businesses.

A lot hinges on this stock price for the rest of us....

Re: Facebook trades under $30, down 7%+

#16

Post by birken »

gamble wrote: post #8
Osiris wrote: post #2

While the IPO was bad for investors, it was certainly good (financially) for Facebook. They definitely maximized their earnings from the IPO and Zuckerberg really made out well getting just under $38/share for his $1.1bn in shares. In contrast to the Google IPO in which the stock skyrocketed on the first day and really took off after that. Google may have been able to extract quite a bit from their IPO than they did.

The early investors made out like kings, but I doubt Facebook's employees are in a cheery mood as they watch their options sink underwater and their vested paper wealth dissipate while waiting for the lockup period to end.

Isn't that the fault of the private investors for overvaluing Facebook? Presumably all granted options had a strike based based on the current private valuation, which clearly the public market doesn't agree with (without judgement as to whether the public market is right or wrong).

Re: Facebook trades under $30, down 7%+

#17

Post by jonknee »

Osiris wrote: post #2

While the IPO was bad for investors, it was certainly good (financially) for Facebook. They definitely maximized their earnings from the IPO and Zuckerberg really made out well getting just under $38/share for his $1.1bn in shares. In contrast to the Google IPO in which the stock skyrocketed on the first day and really took off after that. Google may have been able to extract quite a bit from their IPO than they did.

> In contrast to the Google IPO in which the stock skyrocketed on the first day and really took off after that. Google may have been able to extract quite a bit from their IPO than they did.

Google priced their shares based on an auction, I'd say it was priced right. It was also much smaller because it wasn't a bunch of insiders trying to dump their shares at an inflated value.

Google sold 19.6M shares, 14.1M of them were from corporate. There were 271M shares in total, so only a very small amount of the company was transferred. In contrast for FB, there are 2.14B total shares and the IPO was for 421.2M of them, a much larger percentage of the company. In addition, insiders made up 241M of those shares sold, which is actually the majority of the IPO.

Re: Facebook trades under $30, down 7%+

#18

Post by bdr »

gamble wrote: post #8
Osiris wrote: post #2

While the IPO was bad for investors, it was certainly good (financially) for Facebook. They definitely maximized their earnings from the IPO and Zuckerberg really made out well getting just under $38/share for his $1.1bn in shares. In contrast to the Google IPO in which the stock skyrocketed on the first day and really took off after that. Google may have been able to extract quite a bit from their IPO than they did.

The early investors made out like kings, but I doubt Facebook's employees are in a cheery mood as they watch their options sink underwater and their vested paper wealth dissipate while waiting for the lockup period to end.

I'm skeptical that FB would be higher today if it had IPOd lower.

Re: Facebook trades under $30, down 7%+

#19

Post by borism »

TomGullen wrote: post #12

It's around a $23,000 reduction of market cap per second from the IPO 8 days ago ( https://twitter.com/Scirra/status/207481113902465024 ) A pretty spectacular rate of value loss

I guess that's it for the "hyperinflation is coming!!!" gold-crazed Ron Paul-supporting crowd.
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