[Dwerfsd]

So your 1000.00 investment instantly loses at least 25%... See how this works yet? You don't get any free shares here boys and girls.

Facebook to Increase IPO Deal Size by 25%: Source

By: Kate Kelly
Reporter


Facebook plans to increase the size of its IPO by 85 million shares, says someone familiar with the matter, a move that could value its upcoming offering at as much as $18.5 billion.

Scott Eells | Bloomberg | Getty ImagesThe social network’s 25% upsize plan will be filed with regulators at the U.S. Securities and Exchange Commission Wednesday morning, this person said.
Facebook’s expected move takes the size of its new issue from roughly 340 million shares to roughly 420 million, a change that, combined with the greenshoe – additional shares that could be sold by bankers in the aftermath of the IPO – could value the total deal at nearly $20 billion.
A final decision on Facebook’s IPO price, which is expected to be somewhere between $34 and $38 per share, will be made Thursday evening.
- By CNBC's Kate Kelly

[LarryRda]

Imma laugh when it turns out to be a pump and dump stock.

[soryalomop]

This looks like a major disaster for investors. When they try to squeeze the blabbing fools who tell their life stories on Fakebook, people will drop off. So far, there is no earning design for the company. GM stopped putting ads there since it produced nothing.

[Frodogzzz]

Facebook will be one of the most profitable shorts in business history.

in 10 years, its fall will be a case study at many MBA programs.

Instagram showed clearly Facebook's vulnerability. that's why Facebook paid $1 Billion for Instagram, which had only 30 million users and no profits. Instagram allowed people to upload photos from their iPhone, with a few Photoshop tools thrown in.

[BipiewExifese]

this stock will be groupon in less than a week.

[Henldyhl]

How much revenue does Facebook make by banners etc?

[BipiewExifese]

from zh:

Last year Facebook had $3.8 billion in revenue, not profit, just revenue. We don’t know how profitable Facebook is because it’s a private company. Let’s say Facebook’s executive team is absolutely stellar and they have even better margins than Google with 27.5% (Google achieved 25.7% profit margin in 2011). That would mean they earned $1.045 billion in profit which would imply a P/E ratio of 95.7 and a return of only a little over 1% on your investment. That’s a pretty bad investment which does not even begin to keep pace with inflation.

[Frodogzzz]

http://messages.finance.yahoo.com/mb/FB

feel free to share on the Yahoo Finance message board for Facebook.

[Henldyhl]

from zh:

Last year Facebook had $3.8 billion in revenue, not profit, just revenue. We don’t know how profitable Facebook is because it’s a private company. Let’s say Facebook’s executive team is absolutely stellar and they have even better margins than Google with 27.5% (Google achieved 25.7% profit margin in 2011). That would mean they earned $1.045 billion in profit which would imply a P/E ratio of 95.7 and a return of only a little over 1% on your investment. That’s a pretty bad investment which does not even begin to keep pace with inflation.

Thanks Chad, I'm with everyone else, there are going to be a lot of pissed off investors.

[Ervntewc]

Just a tax on the poorly informed and greedy. Easy come. Easy go.

[SashaLionx]

FaceBook Pulls Reverse BATS - Flash Smashes To €50,000/Share

Submitted by Tyler Durden on 05/18/2012 - 09:49


Sigh: FaceBook's market cap briefly passed $100 trillion. How long until a loaf of bread does the same thing?




Facebook European Premarket Bid - €58

Submitted by Tyler Durden on 05/18/2012 - 09:30 If this screen from Bloomberg is correct, people are far dumber than even we thought, because this implies that FB will have an over $200 billion market cap at the open all else equal.

[pharmacologist30]

this stock will be groupon in less than a week.

Though we can all agree that FB may/will ultimately be a bust, don't expect it to happen fast. This is going to be a trading stock for a while, regardless of what the hell their business plan is. It will could double it's initial $38 price intraday today, maybe even break $100. The swings should be breathtaking. Don't forget, there's a MASSIVE group of investors waiting for the initial euphoria to settle down so that they can invest billions of long-term dollars.

In order to estimate a crash date, we're going to have to see how long the lockout period is for insiders. Probably somewhere between 90 days and 6 months. The ultimate FB crash won't happen until after that. My guess is that it will accompany the general market crash coming in late 2013.

[Haremporblape]

So it seems to me we are going to have another Dot com boom. This could be the path to recovery. I predict many more of these. All with dubious financial potential. Pump and dumped.

Do companies even pay dividends any more? Seems most people are going for "capital appreciation" these days. They obviously think there is no dilution in price for this extra 25%. interesting to see what they do once listed and the flippers start selling. Will retail soak that up with price momentum?

[Haremporblape]

26 Minutes In And... Still Nothing
Submitted by Tyler Durden on 05/18/2012 - 11:27 Market Conditions Yes, we are all waiting for what is increasingly becoming an epic disaster. In the meantime there is this:

• TRADERS FOR FACEBOOK HAVING PROBLEMS CHANGING/CANCELING ORDERS:WSJ...

We believe CANCELING is the operative word. Of course, Europe is about to close which according to some may be the catalyst. In other news, nobody even dare think, let alone whipser "Market Conditions" ZH link

UPDATE: Algos defending $40.00 desparately! 115mm shares From the $38 IPO price, we open at $42.05 (now at $40.1) but we note that in Germany it has tumbled from well over EUR90 earlier. We get the sense the media is disappointed, but of course they will be talking longer-term now and defending a weaker-than-expected open: CNBC: "I just want to make sure we don't whip ourselves into a frenzy on the short term value." - perhaps a little late for that eh? ZH link

Maybe it's just going to crater.

[Morageort]

So 100 billion dollars divided by 800 million active users is about $125 per user. For the amount of personal info active users people input into the system, that may be a valid number.

[Frodogzzz]

definitely the biggest bubble i've ever seen.

this is what a bubble looks like. sort of useful, if/when gold or silver get to this point - then it might be time to sell.


facebookbubble.com

facebubble.com

stealthisfacebook.com

/\ all these domains are taken. i wonder if Facebook did any defensive domain registering.

[rikdpola]

definitely the biggest bubble i've ever seen.

this is what a bubble looks like. sort of useful, if/when gold or silver get to this point - then it might be time to sell.


facebookbubble.com

facebubble.com

stealthisfacebook.com

/\ all these domains are taken. i wonder if Facebook did any defensive domain registering.

Gunny, it can't be a bubble until the price actually goes up first...

The price action today is actually fascinating in its implications. Reports are saying that there is huge "Retail" buying. (Translate: "sheeple") My guess is that all of the commercial players who locked in the IPO price of $38 (Goldman, Fidelity, JPM, etc.) are now locking in an initial easy profit by dumping their shares onto the retail buyers while they are plentiful.

If this is their game, and FB faces an early struggle, don't be surprised to see the commercials then come back in as buyers below the IPO price, then run it up to a big price, and then dump it back onto the retailers for the ultimate fail. That might take a year or so for the entire process, but I think it's a plausible scenario. It will be entertaining to watch from the sidelines.

[soryalomop]

Now at $40-42... bouncing around.

I say it goes to under $20 in less than 6 weeks.

[rikdpola]

Now at $40-42... bouncing around.

I say it goes to under $20 in less than 6 weeks.

I'd take that bet.

[Frodogzzz]

Gunny, it can't be a bubble until the price actually goes up first...

what if it was grossly over-valued to begin with ?

i guess it depends on the definition of a bubble. it has all the hype of a bubble.

next time i get stock options in a publicly held company, i wouldn't mind if it had a valuation of 25 times revenues or 100 times profits.