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I know a bubble when I see one!

  • May 21, 2012
This review is about Facebook as a stock rather than a social media site. It's about business!

Facebook had its IPO listed on Nasdaq last friday (May 18) making Mark Zuckerberg a $20 billion man! He rang in the bell for Nasdaq opening & his own wedding the next day (May 19). That makes Mark Zuckerberg not just the richest 28 year old on the planet but also the luckiest guy in the world!!!

So much about Mark Zuckerberg. He's a highly intelligent guy & I suspect that the ones who make the most out of this IPO is him since he got to choose to set a price that's now deemed to be too high by the market. At $38, Mark Zuckerberg managed to raise some $16 billion for the company and his dream and ambition. Morgan Stanley made some 1% underwriting fee out of this although they have probably lost a lot more by trying to support the share above its issuing price last friday, its 1st day of trading.

Never mind about Morgan Stanley. The heydays of investment banking are over with, we hope!!! Still, JPMorgan Chase has its fair share of limelight last week and probably upcoming weeks too. Not to mention one of Goldman Sachs' top men is being investigated for insider trading!

Back to Facebook. At $38, it's a PE of over 100! That's crazy if you compare it to those of Apple and LinkedIn. Does everyone has to own Facebook shares? As if Facebook hasn't owned enough of your time!!! It doesn't make sense to me. This is a case of hope and greed in the stock market, just like it used to be with tulips! Ok, may be Facebook has potential ... ways to monetize its 800 million users! That's in the "distant" future, is it not? If you think no, then you will be sorry today as it is now trading at $5 less than issue price and $10 off its high (a loss of some 14% from its closing last friday)! Who knows how low it will get? Probably around $25-$28?!

The stock market ... well, if you still believe in it, remember that scarcity rules! And, hopes and greed dominate. Sometimes, fear takes flight too! In this case, it's good to see it's not all in a frenzy!!! 

Greed is good, but only for Mark Zuckerberg!!!
As for Greece, God help them!!!

I know a bubble when I see one! I know a bubble when I see one!

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June 01, 2012
The stock was WAY overpriced. FACEBOOK is an unproven business commodity, and, as such, should have been more adequately priced for the marketplace. This ended up looking mostly like an attempt to create a second tech revolution, but instead it came off looking like another silicon disaster.
June 05, 2012
I feel it's a case of herd instinct as well as greedy speculators trying to make money overnight! As simple as that. It reached my target range price of $25-$28 (within 10 days!) so I'm happy I'm reading it right. Now, the question is how low it gets before one takes a position (if one should wish to invest for the long term, that is! The reason why anyone takes those position to begin with!)!
More Facebook reviews
review by . July 11, 2011
posted in A Whole New World
When sharing can get out of hands!
Is there anyone who is still not on Facebook by now? Yes! Many of my personal friends. Having said that, they are possibly the minority rather than the majority in the world now.      So, I'll keep this short and simple. My take on Facebook.   I had an account on it for many years but I hardly logged in. The main reason being I don't really know a great many who are on it and I was residing in China for the last 4 years, I was logged out of it. It's banned!   …
review by . November 07, 2010
posted in Social_Media
When I first created my Facebook profile, I did so in order to communicate with a few people who I met on the old (and seemingly ancient) Yahoo 360 social network. I had become quite good virtual friends with them and didn't want to lose touch with them whenever 360 shut down.    I believed that those few select people (six friends total), would be my entire world on Facebook. Soon enough, however, I started getting friend requests from people I hadn't seen since high school …
review by . January 20, 2011
posted in Awesomeness
Global phenomenon? Yes. A scourge of every day life? Absolutely. Here's why you should follow my example and pull the plug on Zuckerberg's narcissistic ego-porn site.      So today I took the leap and unfriended myself from Facebook, which is ironic considering that I spend a major part of my time helping clients buy social media advertising - it's like being the drug dealer who won't touch the stuff. And it does strangely feel like I've disconnected …
review by . May 26, 2010
posted in Social_Media
Social Networking has, for the most part, become a part of our everyday lives.  It's still in its infancy, though.  For most of us sites like Friendster and Myspace got us started in Social Networking, while other sites such as Amazon have adapted to becomeing more social networking like in a time that it's a big thing.  Yet when it comes to social networking no website stands out more than Facebook.  This is for several reasons.  Facebook has become a social networking …
review by . November 08, 2009
I realized very shortly after setting up my facebook account that I’d gotten myself into deep trouble. It was September, a little over a year ago. I found my thoughts racing, and usually heading straight back to my friend list. I obsessed over my profile even when I was doing other things; I remember going running by the lake and wondering almost the whole while which Elliott Smith quote defined me as a person. I learned to love chatting with three people at a time—when I’d see …
Quick Tip by . June 01, 2012
posted in Business Matters
Ouch!!! 40% LOSS for investors in its first 10 days of trading on the NASDAQ! More if you bought at the height of around $45 on its listing day!!!      I wrote a review of it (I know a bubble when I see one!) on the weekend after its listing looking for a price range of $25-28! It recorded a low of $26.83 yesterday (May 31) before a technical rebound at the close!       So, what's next?!        
Quick Tip by . May 21, 2012
posted in Business Matters
It began trading on Nasdaq around $43 last friday. Today, in just a market day, over the weekend after Mark's wedding, it's trading at around $33!!! Lucky Mark who sold it at $38 with the help of Morgan Stanley! Not so lucky for the investors (retail or institutional) even if they are buying for the long term!!! They could have gotten it for $33 today or even less later!      PE of over 100?! Forget it!!! Are you sure you're that good a friend with Mark? ;-)   …
Quick Tip by . December 01, 2011
posted in Awesomeness
I'm on Facebook and I hate myself for it. The only reason I joined was because invitations from friends to events kept flying over my head, and when they asked where I was, they would always tell me it was on Facebook. Herein is the big problem I have with the site: People consider it all they need. Basic human decency and intimate, detailed conversation is being eschewed. But on the upside, I've made very useful connections with online friends and it allows me to keep up with the goings-on in Chicago, …
Quick Tip by . December 10, 2010
I don't know why but I just can't muster any interest in Facebook. Spend the overwhelming majority of my online time here on Lunch. Find it much more scintillating.
Quick Tip by . December 17, 2010
Originally, I signed up for Facebook because I had heard it was a good way to keep in touch with friends I knew from school back when. In that regard, the site was a bit of a letdown, but I currently like it more than when I initially joined. While the site has become more commercial and there's been some controversy about the new privacy policy, I think that the site has opened up and allows for more creativity with their new applications.
About the reviewer
Sharrie ()
I'm a traveler at heart & have been nicknamed Travel Queen by friends & colleagues alike. Traveling has been my life passion for the last decade or so. As we enter a new decade, I'm excited … more
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Facebook is a social networking website launched on February 4, 2004. The free-access website is privately owned and operated by Facebook, Inc. Users can join networks organized by city, workplace, school, and region to connect and interact with other people. People can also add friends and send them messages, and update their personal profile to notify friends about themselves. The website's name refers to the paper facebooks depicting members of a campus community that some US colleges and preparatory schools give to incoming students, faculty, and staff as a way to get to know other people on campus.
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