Facebook to Set I.P.O. Price Range at $28 to $35 • Hacker News Board

Re: Facebook to Set I.P.O. Price Range at $28 to $35

#31

Post by adamtmca » Fri, May 04, 2012, 2:29 AM UTC

adamtmca wrote: post #30

nirvana wrote: post #3

Why oh Why is the headline about the stock price? Apple's price is $585ish right now. Apple is not 10 times more expensive than Facebook would be-- only a bit more than 5 times as expensive. Facebook's price range is around $86B. It seems a lot of people want to buy a car for a "monthly payment they can afford" and car dealers have long sold people terrible terms and terribly overpriced cars by structuring the "month…

This is an article on dealbook - everyone reading knows the difference between market cap and price per share and the market cap is in the first paragraph. Headlines include the price per share of stocks all the time, it doesn't mean the readers or writers are stupid.

Also, price earnings would be a pretty foolish approach to valuing Facebook - I wouldn't be so sure that you are so much more sophisticated than the imaginary bozos you are criticizing.

Re: Facebook to Set I.P.O. Price Range at $28 to $35

#32

Post by ComputerGuru » Fri, May 04, 2012, 2:43 AM UTC

I suppose (judging by the comments here and in previous threads) everyone on HN w/ a brokerage account will be shorting FB's stock as soon as it comes out, then?

It's a pretty safe bet that it's being overvalued, but I fear the hype of FB stock amongst the common man is going to keep the price artificially high for a little longer than it would normally. Might not be until the release of the first or second quarter results that people see what a farce it is.

Re: Facebook to Set I.P.O. Price Range at $28 to $35

#33

Post by gbog » Fri, May 04, 2012, 6:54 AM UTC

walru wrote: post #7

nirvana wrote: post #3

Why oh Why is the headline about the stock price? Apple's price is $585ish right now. Apple is not 10 times more expensive than Facebook would be-- only a bit more than 5 times as expensive. Facebook's price range is around $86B. It seems a lot of people want to buy a car for a "monthly payment they can afford" and car dealers have long sold people terrible terms and terribly overpriced cars by structuring the "month…

As the phrase goes, a fool and his money are soon parted. Along the same mindset are people who want to wait for a split to get in. I always chuckle a little inside when I hear that and then try to educate on why that's not necessarily a good thing. Back to Facebook. I haven't looked at the financials, but regardless of what they are it's safe to say the share price will rise quickly due to the reason you stated, and…

> Who knows, maybe this is the next MSFT or AAPL.

Or the next bubble?

Seriously, if you are young enough there is nothing easier and more compelling than leaving Facebook, and Facebook cares a lot about having young people. Why is it so easy to leave? Because youngster do not like their past, they do not like to see themselves as kids. It took a very long time for me to be able to look at a picture of my younger self without instinctive rejection. Only when you are on the "other side" of life that you value past pictures of your life.

Why was Instagram so successful? Some other may hvae said it but still, what strikes me the most is why so many people did use Instagram app to share pics instead of Facebook app. It can't be solely based on UI diffs. It is more because Facebook is perceived as an archive where everything goes if anyone is interested, a trashcan if you will.

I'll not bet a cent on FB. Moreover, we HN readers should not put all our eggs in the same bag, our work, interests, knowledge, passions are anchored to technologies, let's anchor our bank accounts to some other place.

Re: Facebook to Set I.P.O. Price Range at $28 to $35

#34

Post by porlw » Fri, May 04, 2012, 11:23 AM UTC

ComputerGuru wrote: post #32

I suppose (judging by the comments here and in previous threads) everyone on HN w/ a brokerage account will be shorting FB's stock as soon as it comes out, then? It's a pretty safe bet that it's being overvalued, but I fear the hype of FB stock amongst the common man is going to keep the price artificially high for a little longer than it would normally. Might not be until the release of the first or second quarter r…

I believe that FB is way overpriced, but as Keynes said:

“The market can stay irrational longer than you can stay solvent.”

...so shorting it is still risky.