[patrickinator]

http://www.bbc.co.uk/news/business-18163687

In my opinion people were a bit silly to invest in Facebook as it is way over valued. Realistically, it should only be worth about $30 billion at most, and now spectators are pulling back.

Have people not learned their lessons from the dot com bust?

[Herr]

Anyone who thought they would be making a killing with this was either deluded or not living in the real world or got sweet talked into it.

Anyone short selling?

[ROYP]

This pleases me. I don't think Facebook's got long left anyway

[Kennedy7697]

Severely overvalued, to say the least.

[Smack]

I think anyone who invested a lot of money in Facebook's shares was a massive fool and probably doesn't use social networking themselves.

Firstly, all social networks rise and fall. Facebook has risen these last few years but it will eventually fall and get overtaken by something else, just like how no-one uses MySpace or Bebo these days. Google+ hasn't so far been the one to overtake Facebook as some might have initially thought but something will.

Secondly, who even clicks on ads on Facebook - or even the internet, for that matter? What's the point in spending millions to advertise to people who just use their ad-blocker?

[nickss]

$95 billion is still an awful lot for a company which makes $1 billion profit a year..

[Mrkingpenguin]

I think the main reason is not because Facebook is "dead" but because they don't have multiple viable revunue streams yet (eg. no way of profiting of facebook mobile app use), and since investors are in it for money then this discourages investment.

[SoNottingH]

(Original post by Herr)
Anyone who thought they would be making a killing with this was either deluded or not living in the real world or got sweet talked into it.

Anyone short selling?

Apart from Mark Zuckerberg and friends, LOL. I expect he sold enough to buy him and his new wifey a few mansions and a country or two. Amazing how rich they are now even if the shares do move down. Also what an annoying guy he is, he was such a squeaky showoffy self-regarding vanity box when he did his public speech on the launch. I wanted to climb into Facebook and slap him.

[ROYP]

(Original post by SoNottingH)
Also what an annoying guy he is, he was such a squeaky showoffy self-regarding vanity box when he did his public speech on the launch. I wanted to climb into Facebook and slap him.

Lolol I remember the first time I heard him speak watching Inside Facebook last week. He's so much more of a geek than I expected. (For some reason I expected him to be all cool and smooth)

[SoNottingH]

(Original post by ROYP)
Lolol I remember the first time I heard him speak watching Inside Facebook last week. He's so much more of a geek than I expected. (For some reason I expected him to be all cool and smooth)

Yeah, it's like there's a whole huge reason on its own not to buy the shares.

I'm not an expert, is Facebook really worth buying shares in for the long-run though? Google was. Is it as good as Google? Can they make money from ads and stuff?

[Aspiringlawstudent]

I refer you to the thread I made earlier about the shares being overvalued. It appeared the vast majority of people agreed.

[Pride]

but this was obviously going to happen. Facebook shares weren't going to grow perpetually when they went on sale, it's free social networking. I think it's a relatively safe investment, just not as highly profitable as the great demand suggested.

[Ak138]

(Original post by patrickinator)

Have people not learned their lessons from the dot com bust?

i dont think you can compare this to the dotcom bubble, where pets.com became worth more than mcdonalds coca cola and gm combined.. it was just a much hyped ipo who made a few very wealthy, including self proclaimed well doer bono.

[. . .]

If you never saw this coming you are an idiot.

[Teofilo]

(Original post by SoNottingH)
I'm not an expert, is Facebook really worth buying shares in for the long-run though? Google was. Is it as good as Google? Can they make money from ads and stuff?

I'm far from an expert either but don't most web companies have an initial period of staggering growth? Surely Facebook has passed that phase, and the acid test will be whether they can stabilise and consolidate their position in the market.

Will be interesting to see where they try to generate growth from, now that Facebook is essentially in an Open Relationship with the market (sorry...).

[LETSJaM]

Heinously over valued. No suprised banks had to buy up to stop the price from falling.

<3 x

[SoNottingH]

(Original post by Teofilo)
I'm far from an expert either but don't most web companies have an initial period of staggering growth? Surely Facebook has passed that phase, and the acid test will be whether they can stabilise and consolidate their position in the market.

Will be interesting to see where they try to generate growth from, now that Facebook is essentially in an Open Relationship with the market (sorry...).

I read a piece that suggested they will start really aggressively pumping ads at people, that the experience is going to change and that they will do tie-ins with media companies and stuff so that there will be a whole bunch of things you will need Facebook to have access to, but the price will be all those ads. Also that they will pump a load of porn at everyone because that's where the real money is.

[Mbob]

(Original post by patrickinator)
http://www.bbc.co.uk/news/business-18163687

In my opinion people were a bit silly to invest in Facebook as it is way over valued. Realistically, it should only be worth about $30 billion at most, and now spectators are pulling back.

Have people not learned their lessons from the dot com bust?

How do arrive at your valuation of $30 billion instead of ~$100 billion?

[Smack]

(Original post by eco2bottle)
Do you remember Hi5?

Never even heard of it.

(Original post by SoNottingH)
Also that they will pump a load of porn at everyone because that's where the real money is.

Not sure about how much money is in porn any-more. It's like Facebook in that it is available for free and while there are still some pay sites there's enough free porn out there to keep someone masturbating for an entire lifetime.

[Sami']

It was never going to work being valued at $100 billion when they are only making $1 billion.