Tuesday, May 22, 2012

Facebook IPO...

As it turns out, the Facebook IPO might have been overhyped, since it turned out to be a little underwhelming.

I'm surprised they haven't gone bankrupt yet, since obama was pimping them in a townhall meeting.

I just find it hard to believe that a company that generates as little actual revenue as Facebook does could go into an IPO valued as high as it was. I think the revenue generated per user is around the $5 dollar mark. Even with millions and millions of users, revenue stream should be important, shouldn't it? Maybe somebody with some real stock experience can chime in and enlighten me a bit.

It's also a little weird that Facebook could be valued at more than some companies in this Country that are Institutions, that have been around for 100 years (and have been successful).

It could also be that a lot of people were still a bit skeptical after the whole internet bubble of the late 90's, when companies that produced ZERO revenue were trading for massive amounts of money. Paper millionaires one and all...

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