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Puggit

32,071 posts

128 months

[news] 
Tuesday 15th May 2012 quote quote all
munky said:
FB makes money (so far) from ads. Can someone please point out to me where the ads are on the mobile app? Y'know, the mobile app that the last 2 posts say will be ever an more popular way of accessing FB?

thanks
I don't see them on my PCs either, thanks to Ad-Block wink

speedy_thrills

5,916 posts

123 months

[news] 
Tuesday 15th May 2012 quote quote all
Deva Link said:
What on earth did they spend $2.7Bn on?
Forcing users to go to the tile look that no one wanted.

Murph7355

10,182 posts

136 months

[news] 
Tuesday 15th May 2012 quote quote all
Deva Link said:
What on earth did they spend $2.7Bn on?
Servers for Zuckerberg's bedroom and a few new hoodies biggrin

It will be interesting to see how well FB lasts. I won't be sinking money into it - many will, and I suspect many will end up sitting on a loss after the initial furore dies down.

130R

4,711 posts

86 months

[news] 
Tuesday 15th May 2012 quote quote all
I don't know, I bet you would take Google's IPO in 2004 now ... (another one the "experts" doubted). Might seem overpriced but they do have a huge amount of potentially very lucrative data.

youngsyr

7,536 posts

72 months

[news] 
Tuesday 15th May 2012 quote quote all
Deva Link said:
blindswelledrat said:
Yes, they made $1 billion profit last year on $3.7 billion revenue
What on earth did they spend $2.7Bn on?
Hardware, software and support for an internet site with a billion accounts and god knows how many billion photos, perhaps?
Advertisement

Murph7355

10,182 posts

136 months

[news] 
Tuesday 15th May 2012 quote quote all
130R said:
I don't know, I bet you would take Google's IPO in 2004 now ... (another one the "experts" doubted). Might seem overpriced but they do have a huge amount of potentially very lucrative data.
Possibly, but Google and it's ilk weren't mature at the time. And it is now the defacto Internet search engine used for everything including searching for product to buy. From an advertisers pov I think that is very different to the FB proposition. And I see Google constantly twisting and turning and finding new ways to improve itself - it's evolving really well IMO and it's hard to see competitors leading a sustained charge.

Plus FB is not "the new kid on the block" any more. It's a known quantity. Does it have plans to extend its reach or will it succumb to fashion? And is it really as dominant as a 1bn user figure might suggest.

I appreciate I'm anti social media smile A sign I'm getting old I guess. But if FB went out of action for a week I suspect the wider impact would be minimal. If Google went down for a week it would cause major issues for web based businesses and Internet usage in general I think. Yes, alternatives exist. But they're nowhere near as ubiquitous as they're nowhere near as good.

Rude-boy

17,915 posts

113 months

[news] 
Tuesday 15th May 2012 quote quote all
I’m no investment genius but I must say that I would be concerned to invest in a business who’s success or failure relies massively on the most fickle and changeable demographic know to man and who are in the main reliant on their income from Mum and Dad.

Reading that article from the Huffington Post I see a lot of my own uneducated thoughts being verified by those with a much better knowledge of the topic.

I also remember when Friends Reunited, Myspace, Bebo et al were about to take over the World.

Sure FB is ingrained in a lot of people’s everyday lives today but the Next Big Thing could see that disappear in a matter of 12 months or less and FB become as ‘out of fashion’ as texting...

Oakey

15,662 posts

96 months

[news] 
Tuesday 15th May 2012 quote quote all
Isn't the entire point of an IPO to raise investment money that they then, you know, invest into the company? Yet if you read the prospectus they say they have no plans to do any such thing with the money.

Facebook said:
The principal purposes of our initial public offering are to create a public market for our Class A common stock and thereby enable future access to the public equity markets by us and our employees, obtain additional capital, and facilitate an orderly distribution of shares for the selling stockholders. We intend to use the net proceeds to us from our initial public offering for working capital and other general corporate purposes; however, we do not currently have any specific uses of the net proceeds planned. We may use a portion of the net proceeds to us to satisfy a portion of the anticipated tax withholding and remittance obligations related to the initial settlement of our outstanding RSUs, which will become due approximately six months following the completion of our initial public offering. Additionally, we may use a portion of the proceeds to us for acquisitions of complementary businesses, technologies, or other assets. However, we have no commitments with respect to any such acquisitions or investments at this time.

Pending other uses, we intend to invest the proceeds to us in investment-grade, interest-bearing securities such as money market funds, certificates of deposit, or direct or guaranteed obligations of the U.S. government, or hold as cash. We cannot predict whether the proceeds invested will yield a favorable return. Our management will have broad discretion in the application of the net proceeds we receive from our initial public offering, and investors will be relying on the judgment of our management regarding the application of the net proceeds.

We will not receive any proceeds from the sale of shares of Class A common stock by the selling stockholders. Mark Zuckerberg, our founder, Chairman, and CEO, will offer and sell shares in our initial public offering. We expect that substantially all of the net proceeds Mr. Zuckerberg will receive upon such sale will be used to satisfy taxes that he will incur upon his exercise of an outstanding stock option to purchase 120,000,000 shares of our Class B common stock.

DIVIDEND POLICY

We have never declared or paid cash dividends on our capital stock. We currently intend to retain any future earnings for use in the operation of our business and do not intend to declare or pay any cash dividends in the foreseeable future. Any further determination to pay dividends on our capital stock will be at the discretion of our board of directors, subject to applicable laws, and will depend on our financial condition, results of operations, capital requirements, general business conditions, and other factors that our board of directors considers relevant. In addition, the terms of our credit facility contain restrictions on our ability to pay dividends.
Edited by Oakey on Tuesday 15th May 10:17

louiebaby

5,509 posts

71 months

[news] 
Tuesday 15th May 2012 quote quote all
  • I think Facebook is over priced.
  • I think it will go down in value.
  • I would not like to try to guess when this will happen.
A runaway train will stop eventually, because it will run out of fuel and momentum. I wouldn't like to guess where it would stop by standing on the tracks. I liken shorting Facebook shares to this.

youngsyr

7,536 posts

72 months

[news] 
Tuesday 15th May 2012 quote quote all
Oakey said:
Isn't the entire point of an IPO to raise investment money that they then, you know, invest into the company? Yet if you read the prospectus they say they have no plans to do any such thing with the money.
Reads to me as they're raising it for working capital, to pay some tax bills and to build a war chest for acquisitions, although none have been formally identified.


El Guapo

1,926 posts

70 months

[news] 
Tuesday 15th May 2012 quote quote all
They're valuing Facebook at $100bn.
They're deluded.
Ahhm ooot.

Deva Link

26,934 posts

125 months

[news] 
Tuesday 15th May 2012 quote quote all
Saw a report today that says General Motors will stop buying ads on Facebook as research has shown they have no effect.
They will continue to use free Facebook postings to promote themselves though.

Murph7355

10,182 posts

136 months

[news] 
Tuesday 15th May 2012 quote quote all
Deva Link said:
Saw a report today that says General Motors will stop buying ads on Facebook as research has shown they have no effect.
They will continue to use free Facebook postings to promote themselves though.
This goes into the "no st Sherlock" camp. 8yr old girls, spotty 14yr olds and gangstas tend not to buy too many Zafiras smile

(That said, maybe in 10yrs' time we'll see a sudden spike in Vauxhall sales and all will be forgiven).

PS "We're IPOing so we can pay our tax bill. No plans to do owt else with the money". Taking the piss on their sales pitch smile

Deva Link

26,934 posts

125 months

[news] 
Tuesday 15th May 2012 quote quote all
Murph7355 said:
PS "We're IPOing so we can pay our tax bill. No plans to do owt else with the money". Taking the piss on their sales pitch smile
Sounds like a bit of a windfall for the US Government though, with all those options and RSUs being exercised!

theaxe

2,927 posts

102 months

[news] 
Tuesday 15th May 2012 quote quote all
tank slapper said:
I read an article about this yesterday which made some good points: http://www.huffingtonpost.com/john-f-ince/facebook...
This pretty much sums up my view. I'm not on FB but as far as I can tell the vast majority of the 600m users are people with too much free time (ie. low income) or from countries with little disposable income.

LinkedIn on the other hand will target much more lucrative users at a fraction of the operating costs.

If I could short-sell Facebook over the next 5 years I would.

Oakey

15,662 posts

96 months

[news] 
Wednesday 16th May 2012 quote quote all
theaxe said:
This pretty much sums up my view. I'm not on FB but as far as I can tell the vast majority of the 600m users are people with too much free time (ie. low income) or from countries with little disposable income.
I can believe that, there's a girl I know of that has done a total of 6 months of employment since leaving school some 14yrs ago. 5 kids to 2-3 different fathers and posts every facet of her life on there.

ninja-lewis

2,146 posts

70 months

[news] 
Wednesday 16th May 2012 quote quote all
youngsyr said:
Oakey said:
Isn't the entire point of an IPO to raise investment money that they then, you know, invest into the company? Yet if you read the prospectus they say they have no plans to do any such thing with the money.
Reads to me as they're raising it for working capital, to pay some tax bills and to build a war chest for acquisitions, although none have been formally identified.
Once a company passes 500 private investors, or has $10 million assets and a common equity class with more than 500 shareholders then the SEC requires them to make regulatory filings like a public company - most companies in this situation decide they might as well go public anyway. Facebook exceeded those limits last year (around the time Goldman Sachs invested) and the rules require them to start making information public within 120 days of their fiscal year end - i.e. about now.

Being listed on the stockmarkets will also make it easier for employees to trade their shares as previously they weren't allowed to sell them on private exchanges.

fbrs

8,467 posts

143 months

[news] 
Wednesday 16th May 2012 quote quote all
Last year fb made $1bn, half of which was from the sale of virtual farm animals. Whilst any business that makes $500m selling nonsense to the hard of thinking is absolutely genius how in hell is it worth $100-150bn? Seems you need to look past facebook to what they could possibly do in the future but for some reason haven't done yet and discount all those lovely cashflows as if they already happened... hmm

Deva Link

26,934 posts

125 months

[news] 
Wednesday 16th May 2012 quote quote all
fbrs said:
Last year fb made $1bn, half of which was from the sale of virtual farm animals. Whilst any business that makes $500m selling nonsense to the hard of thinking is absolutely genius how in hell is it worth $100-150bn? Seems you need to look past facebook to what they could possibly do in the future but for some reason haven't done yet and discount all those lovely cashflows as if they already happened... hmm
You have to wonder why the founders don't just take the money and run? Perhaps they will!

They'd be set for generations.

ewenm

26,464 posts

125 months

[news] 
Wednesday 16th May 2012 quote quote all
Deva Link said:
You have to wonder why the founders don't just take the money and run? Perhaps they will!
That would be my tactic right now.
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