Opinion on Facebook IPO

Hello,

just wonder: what is your opinion regarding Facebook IPO? Do you think the share will continue to decrease? Or do you think Facebook will succeed in monetizing their social network?

What about the valuation? Is it too much?

My view is that Facebook does not deserve such high valuations. I would say anything less then 20x the annual revenue would be in comfortable zone. Most institutions that are holding/buying this stock do not really understand the business in my opinion and treat it like a brick and mortar business which it is not. Things change on the internet really fast. Google has a hundred times better business model and still its valuations are not anywhere near what facebook's stocks are valued in relation to annual revenue and profitability.

So yes Facebook does not look like it would come back to its listing price any time soon unless they do something very clever about monetizing their mobile traffic.

Facebook is a great website. It made great inroads into social networking displacing all others. But in my opinion, their valuation is overpriced and overhyped. No doubt some people will make tons of money out of the stock but many will loose money also. Note that in a game of poker, when someone wins, it is always at the expense of others.

I do not claim to have a great understanding of stocks and shares, but I can see a stacked deck.

The valuations of Facebook is very expensive. It would be very difficult for Facebook to grow organically.

Why would anyone give a 5 year old Social Media company $100 billion?

That's foolish. The time to invest or give them a crap load of money is in the first 2 years. Not when they are in the vintage stage.