PvP Lives Here

This is sort of old news... but I can't find any solid thoughts from my colleagues, so I'm going to attempt to ask the QQ community.

So as everyone knows (or should know), Facebook is releasing a $5 billion dollar IPO; which in a sense means that they're selling $5 billion dollars of their company to the public.

How many of you are going to go for it when it's released? It may be delayed because Mike Zuckerburg will be heavily taxed (2 billion USD) once it's completely filed (he has options of up to 120 million shares at 6 cents per share). Deciding whether or not to buy the IPO is hard because Facebook's profits are unknown. Sure- revenue is posted, but we have no idea how much it cost to run Facebook's operation. (for the financially illiterate, profit= revenue-cost)

Facebook is predicted to be valued at 100 billion, which is equivalent to Apple, and not too far from Google. If its actual worth is way less, then investors will shy away from the stock- big time. The worth will probably be dependent on how much profit they actually generate.

I myself tested the waters a bit by investing a small portion of my wealth in Zynga's IPO on Feb. 2. Zynga is the company that is responsible for the shitty annoying ads and e-invites that spam news feeds; however, Zynga accounts for 12% (about 500 million USD) of Facebook's profit, which makes them entirely codependent. Since Feb. 2nd, ZNGA has increased about 30%, I'm thinking about buying futures at $18 USD in June. Thoughts?

Zuckerburg rigged it so he'll always have control of the company and will choose his successor. I always worry when I see things like that.

Not only that but it's an investment that is going to have a short shelf life. Facebook reached the saturation point of their service in most western countries a few years ago (something around 50% of the population) so it doesn't have much in the way of prospects for being a better generator of revenue in the future. If anyone doubts this, I have just one question for them: What's happening with MySpace?

Yes, but Facebook has accomplished what the CIA has failed to do since its creation: create a database of millions of people.

Also, Facebook is much more proactive in the sense that they come up with new ideas to make money- MySpace never did such a thing. Insiders say that Facebook plans to put companies such as Netflix out of business (or merge with Netflix).

Short the IPO, pick up long position afterwards

You will have to excuse me if I'm skeptical of such a business plan. It sort of reminds me of AOL i.e. attempting to provide every service possible to a customer so they can sort of seal off their customer base from large chunks of the internet.

Somehow i don't think facebook will be king for a long time. Sure they have a huge userbase right now but with these kinda things, they always come and go when something better comes up. I'm with yossarian on this one.

The whole idea of it merging with things like netflix, and hulu make me think about the long term future of where humanity as a whole is heading. It makes sense to have your facebook linked with your xbox, netflix, cable service, email etc... that way you can be better serviced and have all your entertainment needs customized. It truely is remarkable to think about how rapid the technological pace is.

the question i believe your asking is whether you think Facebook will be the driving force behind the "winds of change" or will they die out when the go public and become another has been like MySpace.

the answer is, nobody knows. how can you make a prediction on something that has never happened before? you know as well as i do that economics is not like building a bridge. you can't take any past examples and use them as a model, because the same trick usually doesnt work twice. in this case, we dont even have a past to look at.

i would say Facebook is a high risk, high reward. It will slow down before it picks up though.

How do you plan on actually buying this stock? Probably 95% of the shares will be purchased by institutional investors. Leaving 5% for everyone else until those investors feel like cashing out when the price is high enough. If anything I would say invest more into Zynga stock because it will actually be available. Because if you expected to make money from the Facebook stock, the Zynga stock should rise as well since one feeds off the other.

For those in the Valley who really knows how money works....

NEED MORE ADJUSTED N MOTHERFUCKIN CONSOLIDATED HUSTLE OPERATING INCOME UP IN THIS MOTHERFUCKER

anyone hop on that google+ train? i heard it was supposed to be the next best thing but haven't heard much about it recently.

if i'm being slutty i'd rather get fucked by facebook than google+ KNOW WHAT I MEAN

I remember thinking about it but then deciding that I need more information before committing the $ ...

I'm sure the timing on Yahoo's lawsuit is purely coincidental.

http://www.villagevoice.com/2012-02-15/ ... k-killers/

""I'm not suggesting it should be illegal," Moglen told the audience of the Internet Society of New York. "It should be obsolete. We're technologists. We should fix it."... "Mr. Zuckerberg richly deserves bankruptcy," Moglen said. "Let's give it to him."
I personally doubt Facebook will be "killed", as the world is full of the too lazy to switch, but it's status might be harmed.

This doesn't really relate to the immediate question about profits, just thought it was relevant overall.