[quote=markmax33][quote=Allan from Fallbrook][quote=markmax33]
Facebook is getting paid $125/user for exclusive marketing rights to the users with very specific information about the user for the rest of their lives. The average Facebook user is probably 30. I haven’t done all of my research but for less than a 1/2 cent a day for the rest of their lives you can invest in marketing company with gaurenteed specific traffic. You are nuts not to consider this as a valid investment. This is why the over 50 crowd can’t judge up and coming companies very well. They don’t realize how dependent the youth are on it.
I haven’t decided to buy Facebook yet, but I have not doubt based on the initial numbers they have a very valid business model. If Google turned a massive profit on search alone, Facebook will be big, maybe bigger. Notice how Google is trying to force people into Google plus and redoing terms all of a sudden?
[quote=Allan from Fallbrook]
I’ll give you a little leeway because you’re young and clearly don’t know how the tech world operates, but get your facts straight before you pop off, alright?[/quote]
I’m very confident in my abilities and you shouldn’t really be considering these risky stocks either at your age.[/quote]
Markmax: You should keep this post to review after you lose your ass on Facebook. The comment about my age is also funny, because it’s all of a piece with “it’s different this time”, “it’s the NEW economy, stupid” and “they’re not making any more land”. For someone who ostensibly has an MBA, you sure don’t seem to have a good handle on either Finance or Accounting. The FUNDAMENTALS DO NOT CHANGE.
Not that it really matters. In the investment business, you’re what is known as dumb money. That was the point of my examples regarding the tech boom/bust, but you’re clearly TOO SMART to understand them. By the time you “get in on” Facebook, the smart money is long gone.[/quote]
Funny guy, I lay out how the business will be successful and you don’t even evaluate it and you call me names. You could atleast look at the numbers and tell me why my assumptions were wrong. Companies are doubling social media advertising in 3 years and it means nothing to you. I bet you said this about Google when it IPO’ed for $60/share and now stands at ~$550.
If you understood the history of social media from the AOL instant messenger and people’s “profile” all the way through MySpace to the guys that have actually monetized you it, you would get it. How about you give me a dollar for every $ increase in share prices in 3 years and I’ll give you a dollar for every dollar of loss. There is demand for this stuff and it is a viable business with a viable way to make money that will only get better through location and more pinpoint advertising. Meet me at George’s in La Jolla in on 2/06/2015 @ 5pm. I’ll be buying you a steak dinner with my winnings.
You seem to forget there are a whole lot of 20s and 30s that use this thing that have stock accounts too. You seem to forget they are going to put money into it. The pump and dump doesn’t work for Apple or Google for good reasons.[/quote]
Markmax: Don’t get your knickers in a twist, Francine, I wasn’t insulting you. You ARE dumb money, and you make that very point in your reference to the Google IPO. Do yourself a favor and see who was in on the “ground floor” of that IPO (i.e. the “smart money”) and then who followed as the stock rocketed (the “dumb money”). You keep saying that you have an MBA and understand the metrics of an IPO, but you’ve clearly never done any diligence on one, or you’d know to avoid Facebook.
I don’t discount the 20 and 30-somethings out there, but I think you’re giving them far more credit in terms of investment decision making then they actually have. I employ both 20 and 30-something engineers (no undergrads in the bunch, either MS or PhD) and I can tell you that they’re not stampeding out to buy Facebook stock when it becomes available.
