IN LIGHT OF THE RECENT FACEBOOKIPO FLOP WE REVISIT THE POPULARSOCIAL MEDIA SITE.  W W W. P R O F I TA B L E I N V E S T I ...
IN FEBRUARY WE POSED THEQUESTION, “IS FACEBOOK A GOODINVESTMENT?”  W W W. P R O F I TA B L E I N V E S T I N G T I P S . C...
IT WAS OUR OPINION THEN AND OUROPINION NOW THAT FACEBOOK WILLPROVIDE VALUE FOR LONG TERMINVESTORS ONLY IF IT FINDSEFFECTIV...
WE ALSO NOTED THAT WHENFLOATING AN IPO THOSE IN CHARGECOMMONLY SET THE PRICE SO THATTHE STOCK IS LIKELY TO GO UP ONTHE FIR...
THAT WAS NOT THE CASE WHENFACEBOOK WENT PUBLIC.  W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
IN FACT IT APPEARS THAT IT WAS AFACEBOOK IPO FLOP.   W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
THE IPO WAS OFFERED AT $38.00.   W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
THE STOCK OPENED PROMISINGLYAT $42 A SHARE AND PROMPTLY FELLINTO THE $38 RANGE.  W W W. P R O F I TA B L E I N V E S T I N...
AFTER BUYING BY THE INVESTMENTBANKERS WHO RAN THE IPO, THE STOCKROSE BACK AS HIGH AS $41.68 BEFOREEVENTUALLY ENDING THE TR...
WHO WON?  W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
THE IPO WAS EMINENTLYSUCCESSFUL FOR FACEBOOK.  W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
JUST RECENTLY A FIGURE IN THE $26A SHARE RANGE WAS BANDIEDABOUT FOR A LIKELY IPO PRICE.   W W W. P R O F I TA B L E I N V ...
THE INVESTMENT BANKERS PUSHEDTHIS UP TO $38 AND FACEBOOKREALIZED $16 BILLION. AND THEINVESTMENT BANKERS WON WITHTHEIR FEES...
HOWEVER, ANYONE NOW HOLDINGFACEBOOK STOCK MAY BEWONDERING HOW TO UNLOAD WHATMAY WELL BE AN OVERPRICEDSTOCK.  W W W. P R O ...
WHAT HAPPENED?  W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
IN THE HYPE THAT PRECEDED THEFACEBOOK IPO FLOP THE IPO WASEXPECTED TO PRICE THE COMPANYIN THE TOP RANKS OF AMERICANCORPORA...
AT THE SAME TIME THE ISSUE OFWHETHER OR NOT ADVERTISERSCAN SELL ANYTHING VIA FACEBOOKCAME UP.  W W W. P R O F I TA B L E I...
GENERAL MOTORS QUIT PLACINGADS ON FACEBOOK BECAUSE THEYWERE NOT GETTING ANY SALES.  W W W. P R O F I TA B L E I N V E S T ...
DURING THE SAME TIME FRAME THEPOSSIBILITY OF A GREEK FINANCIALCOLLAPSE REEMERGED ANDPOSSIBLY EXCESSIVE AUSTERITYMEASURES T...
FACEBOOK AND ITS INVESTMENTBANKERS MAY WELL HAVE BEENGREEDY, RAISING THE PRICE OF THEIPO IN THE FACE OF BAD NEWS.  W W W. ...
IN THE END THE BANKERS MADEMONEY AND FACEBOOK MADE LOTSOF MONEY AND ANYONE HOLDINGTHE STOCK LIVES IN FEAR OF AWORSENING FA...
WHAT IS NEXT FOR FACEBOOK?  W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
FACEBOOK REMAINS AN INCREDIBLYPOPULAR SOCIAL MEDIA SITE.  W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
BUT IT MAY NOT BE AS STRONG ONHANDHELD DEVICES AS IT IS ONPERSONAL COMPUTERS  W W W. P R O F I TA B L E I N V E S T I N G ...
AS WE NOTED IN OUR “INVEST INHEWLETT PACKARD” ARTICLE SOMEMONTHS AGO PEOPLE ARE BUYINGFEWER PERSONAL COMPUTERS ANDUSING HA...
BUT, IF FACEBOOK DOES NOT DO ASWELL ON TABLETS IT MAY LOSEMARKET SHARE TO OTHER, NEWERSOCIAL NETWORKING SITES.  W W W. P R...
AND THERE IS THE ISSUE OF SALES.   W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
IN THE END THE FACEBOOK IPO FLOPIS BECAUSE BIG, SERIOUSINVESTORS DO NOT SEE HOWFACEBOOK CAN SUCCESSFULLYMONETIZE ITS LARGE...
IT MAY CONTINUE TO BE VERY POPULARBUT NOT ALL THAT PROFITABLE.   W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
IF THAT IS THE FUTURE THATFACEBOOK SAW, THEN IT WAS GOODREASON TO PULL SOME CASH OUTOF THE OPERATION BY WAY OF ANIPO.  W W...
NO ONE CAN BLAME FACEBOOK FORCASHING IN ON THEIR SUCCESS BYPROVIDING A PUBLIC MEANS OF TRADINGSHARES.   W W W. P R O F I T...
THE PROBLEM FOR INVESTORS ISWHETHER THE FACEBOOK IPO FLOP IS AMEASURE OF THINGS TO COME IN WHICHTHE STOCK WILL PROGRESSIVE...
THOSE WHO DO THEIR FUNDAMENTALANALYSIS APPARENTLY THINK THAT THESTOCK IS PRICED TOO HIGH.   W W W. P R O F I TA B L E I N ...
AS USUAL WE ARE NOT SUGGESTING THATONE INVEST IN FACEBOOK OR THAT ONEIGNORE THE STOCK.   W W W. P R O F I TA B L E I N V E...
RATHER OUR POINT IS TO PROVIDE ANEXAMPLE OF THINKING THROUGH ANINVESTMENT.   W W W. P R O F I TA B L E I N V E S T I N G T...
FOR MORE INSIGHTS AND USEFULINFORMATION REGARDING INVESTMENTS ANDINVESTING, VISITWWW.PROFITABLEINVESTINGTIPS.COM.
Facebook IPO Flop
Facebook IPO Flop
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Facebook IPO Flop

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Facebook IPO Flop


In light of the recent Facebook IPO flop we revisit the popular social media site. In February we posed the question, “Is Facebook a good investment?” It was our opinion then and our opinion now that Facebook will provide value for long term investors only if it finds effective ways to monetize its name and technology. We also noted that when floating an IPO those in charge commonly set the price so that the stock is likely to go up on the first day of trading. That was not the case when Facebook went public. In fact it appears that it was a Facebook IPO flop. The IPO was offered at $38.00. The stock opened promisingly at $42 a share and promptly fell into the $38 range. After buying by the investment bankers who ran the IPO, the stock rose back as high as $41.68 before eventually ending the trading day at $38.27.

Who Won?

The IPO was eminently successful for Facebook. Just recently a figure in the $26 a share range was bandied about for a likely IPO price. The investment bankers pushed this up to $38 and Facebook realized $16 Billion. And the investment bankers won with their fees and commissions. However, anyone now holding Facebook stock may be wondering how to unload what may well be an overpriced stock.

What Happened?

In the hype that preceded the Facebook IPO flop the IPO was expected to price the company in the top ranks of American Corporations. At the same time the issue of whether or not advertisers can sell anything via Facebook came up. General Motors quit placing ads on Facebook because they were not getting any sales. During the same time frame the possibility of a Greek financial collapse reemerged and possibly excessive austerity measures threaten to drive Europe into recession. Facebook and its investment bankers may well have been greedy, raising the price of the IPO in the face of bad news. In the end the bankers made money and Facebook made lots of money and anyone holding the stock lives in fear of a worsening Facebook IPO flop.

What Is Next for Facebook?

Facebook remains an incredibly popular social media site. But it may not be as strong on handheld devices as it is on personal computers. As we noted in our “Invest in Hewlett Packard” article some months ago people are buying fewer personal computers and using hand held devices such as tablets for their emails and chats. If that is all one does a tablet makes more sense than a PC. But, if Facebook does not do as well on tablets it may lose market share to other, newer social networking sites. And there is the issue of sales. In the end the Facebook IPO flop is because big, serious investors do not see how Facebook can successfully monetize its large following. It may continue to be very popular but not all that profitable. If that is the future that Facebook saw, then it was good reason to pull some cash out o by way of an IPO. No one blames Facebook for cashing in.

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Facebook IPO Flop

  1. IN LIGHT OF THE RECENT FACEBOOKIPO FLOP WE REVISIT THE POPULARSOCIAL MEDIA SITE. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  2. IN FEBRUARY WE POSED THEQUESTION, “IS FACEBOOK A GOODINVESTMENT?” W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  3. IT WAS OUR OPINION THEN AND OUROPINION NOW THAT FACEBOOK WILLPROVIDE VALUE FOR LONG TERMINVESTORS ONLY IF IT FINDSEFFECTIVE WAYS TO MONETIZE ITSNAME AND TECHNOLOGY. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  4. WE ALSO NOTED THAT WHENFLOATING AN IPO THOSE IN CHARGECOMMONLY SET THE PRICE SO THATTHE STOCK IS LIKELY TO GO UP ONTHE FIRST DAY OF TRADING. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  5. THAT WAS NOT THE CASE WHENFACEBOOK WENT PUBLIC. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  6. IN FACT IT APPEARS THAT IT WAS AFACEBOOK IPO FLOP. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  7. THE IPO WAS OFFERED AT $38.00. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  8. THE STOCK OPENED PROMISINGLYAT $42 A SHARE AND PROMPTLY FELLINTO THE $38 RANGE. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  9. AFTER BUYING BY THE INVESTMENTBANKERS WHO RAN THE IPO, THE STOCKROSE BACK AS HIGH AS $41.68 BEFOREEVENTUALLY ENDING THE TRADING DAY AT$38.27. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  10. WHO WON? W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  11. THE IPO WAS EMINENTLYSUCCESSFUL FOR FACEBOOK. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  12. JUST RECENTLY A FIGURE IN THE $26A SHARE RANGE WAS BANDIEDABOUT FOR A LIKELY IPO PRICE. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  13. THE INVESTMENT BANKERS PUSHEDTHIS UP TO $38 AND FACEBOOKREALIZED $16 BILLION. AND THEINVESTMENT BANKERS WON WITHTHEIR FEES AND COMMISSIONS. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  14. HOWEVER, ANYONE NOW HOLDINGFACEBOOK STOCK MAY BEWONDERING HOW TO UNLOAD WHATMAY WELL BE AN OVERPRICEDSTOCK. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  15. WHAT HAPPENED? W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  16. IN THE HYPE THAT PRECEDED THEFACEBOOK IPO FLOP THE IPO WASEXPECTED TO PRICE THE COMPANYIN THE TOP RANKS OF AMERICANCORPORATIONS. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  17. AT THE SAME TIME THE ISSUE OFWHETHER OR NOT ADVERTISERSCAN SELL ANYTHING VIA FACEBOOKCAME UP. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  18. GENERAL MOTORS QUIT PLACINGADS ON FACEBOOK BECAUSE THEYWERE NOT GETTING ANY SALES. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  19. DURING THE SAME TIME FRAME THEPOSSIBILITY OF A GREEK FINANCIALCOLLAPSE REEMERGED ANDPOSSIBLY EXCESSIVE AUSTERITYMEASURES THREATEN TO DRIVEEUROPE INTO RECESSION. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  20. FACEBOOK AND ITS INVESTMENTBANKERS MAY WELL HAVE BEENGREEDY, RAISING THE PRICE OF THEIPO IN THE FACE OF BAD NEWS. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  21. IN THE END THE BANKERS MADEMONEY AND FACEBOOK MADE LOTSOF MONEY AND ANYONE HOLDINGTHE STOCK LIVES IN FEAR OF AWORSENING FACEBOOK IPO FLOP. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  22. WHAT IS NEXT FOR FACEBOOK? W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  23. FACEBOOK REMAINS AN INCREDIBLYPOPULAR SOCIAL MEDIA SITE. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  24. BUT IT MAY NOT BE AS STRONG ONHANDHELD DEVICES AS IT IS ONPERSONAL COMPUTERS W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  25. AS WE NOTED IN OUR “INVEST INHEWLETT PACKARD” ARTICLE SOMEMONTHS AGO PEOPLE ARE BUYINGFEWER PERSONAL COMPUTERS ANDUSING HAND HELD DEVICES SUCH ASTABLETS FOR THEIR EMAILS ANDCHATS. IF THAT IS ALL ONE DOES ATABLET MAKES MORE SENSE THAN APC. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  26. BUT, IF FACEBOOK DOES NOT DO ASWELL ON TABLETS IT MAY LOSEMARKET SHARE TO OTHER, NEWERSOCIAL NETWORKING SITES. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  27. AND THERE IS THE ISSUE OF SALES. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  28. IN THE END THE FACEBOOK IPO FLOPIS BECAUSE BIG, SERIOUSINVESTORS DO NOT SEE HOWFACEBOOK CAN SUCCESSFULLYMONETIZE ITS LARGE FOLLOWING. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  29. IT MAY CONTINUE TO BE VERY POPULARBUT NOT ALL THAT PROFITABLE. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  30. IF THAT IS THE FUTURE THATFACEBOOK SAW, THEN IT WAS GOODREASON TO PULL SOME CASH OUTOF THE OPERATION BY WAY OF ANIPO. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  31. NO ONE CAN BLAME FACEBOOK FORCASHING IN ON THEIR SUCCESS BYPROVIDING A PUBLIC MEANS OF TRADINGSHARES. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  32. THE PROBLEM FOR INVESTORS ISWHETHER THE FACEBOOK IPO FLOP IS AMEASURE OF THINGS TO COME IN WHICHTHE STOCK WILL PROGRESSIVELY FALL TOA MORE REALISTIC PRICE RANGE. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  33. THOSE WHO DO THEIR FUNDAMENTALANALYSIS APPARENTLY THINK THAT THESTOCK IS PRICED TOO HIGH. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  34. AS USUAL WE ARE NOT SUGGESTING THATONE INVEST IN FACEBOOK OR THAT ONEIGNORE THE STOCK. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  35. RATHER OUR POINT IS TO PROVIDE ANEXAMPLE OF THINKING THROUGH ANINVESTMENT. W W W. P R O F I TA B L E I N V E S T I N G T I P S . C O M
  36. FOR MORE INSIGHTS AND USEFULINFORMATION REGARDING INVESTMENTS ANDINVESTING, VISITWWW.PROFITABLEINVESTINGTIPS.COM.

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