11–20 of 27 posts
You know what? Good. A stock that explodes after the IPO means it was priced too low, and the company didn't raise a fair amount of capital. Facebook is obviously smart enough to think for the long term. I don't trust the financial machinery to do that.
You know what? Good. A stock that explodes after the IPO means it was priced too low, and the company didn't raise a fair amount of capital. Facebook is obviously smart enough to think for the long term. I don't trust the financial machinery to do that.
These companies (most companies not just tech companies or just facebook) are largely black boxes to them.
They aren't thinking about how there are lots of hardworking people at them who deserve to be rewarded for their work.
I've been thinking a lot recently about this. How even myself I didn't really have a good perspective on how a company's stock price / ipo relates to them.
But with facebook its different though. I've known about facebook since I joined it in 2006 as a senior in high school.
And now I know people who work there. I even have a friend who works for Morgan Stanley.
So now im in a unique position to really understand where these numbers come from and the value they do or don't represent.
If you never learn that kind of stuff; either on your own, from others who have seen it, or don't have the benefit of the collective knowledge of a community like hacker news.
All you would have is:
"High stock price good, low stock price bad"
And the rabbit hole is actually much deeper than that.
Like in this instance even though the stock price didn't rise greatly it was actually good for the company. Because that's what an intial public offering is supposed to be about. A way for the company to raise capital. If the stock price doubles after that its all well and good but the company itself doesn't get to benefit from that aside from good press.
And I think a lot of people keep taking for granted that facebook is not public now because it wants to be but because it has to be, but thats a whole other conversation
Can we just stop beating this dead horse for once please?
Why? Like it or not, FB is the bellwether for the current technology/economic climate. It's one of the biggest IPOs ever, not just in size, but in renown. There was a mainstream movie made about it before it was even public. It's a huge story. It's important to gauge these things as they happen, so the next time around you get to be the one saying, "I've seen this before." These stories may all turn out to be moot, a…
I don't think facebook's IPO has any real bearing on the industry at hand. Other recent tech IPOs like LinkedIn and Jive have varied by more than 10% in the past week.
A 16% drop hardly qualifies as the "worst performing IPO of the decade".
Is there one that is worse that they missed? Article seems to suggest that MF Global Holdings Inc. had the second worst opening week.
And then when three cherries don't come up on the first spin, man, are they pissed off.
You know what? Good. A stock that explodes after the IPO means it was priced too low, and the company didn't raise a fair amount of capital. Facebook is obviously smart enough to think for the long term. I don't trust the financial machinery to do that.
People don't like the feeling of being sold something for more than it's worth. We call that being "ripped off," and most folks don't take too kindly to it. I believe you described this as getting a "fair amount."
People also don't like the folks who rip off other people. It's kind of a dick move to rip someone off. Those folks tend to do quite well, yes. That's FB in this case, who as you note made out just swell.
People especially resent it when those guys get incredibly wealthy by ripping off millions of people.
> Facebook is obviously smart enough to think for the long term. I don't trust the financial machinery to do that.
I think we can all agree - there's nobody we can trust more than Facebook to rip us off properly.
No it's not. FTA: "The IPO produced the worst five-day return among the largest U.S. deals of the past decade." That's an extremely qualified factoid. Please retitle this post.
You know what? Good. A stock that explodes after the IPO means it was priced too low, and the company didn't raise a fair amount of capital. Facebook is obviously smart enough to think for the long term. I don't trust the financial machinery to do that.
Here's how real people think about a hyped, flop of an IPO: People don't like the feeling of being sold something for more than it's worth. We call that being "ripped off," and most folks don't take too kindly to it. I believe you described this as getting a "fair amount." People also don't like the folks who rip off other people. It's kind of a dick move to rip someone off. Those folks tend to do quite well, yes. Th…