Facebook IPO does not go as planned

[Frikkenator]

+1
Let me get this right,the business model for facebook is based on "click-through rate"???? so the less "clicks" or "Tap's" on FB the more it becomes less attractive and therefore less revenue.... I might be wrong but I smell something fishy.

There is nothing wrong with a business model based on click-throughs. It's how Google makes 97% of their money. The problem is facebook users don't click on the ads.

 

[siraman]

There is nothing wrong with a business model based on click-throughs. It's how Google makes 97% of their money. The problem is facebook users don't click on the ads.

Correct! Nothing wrong at all, except that, maybe I was just lazy in trying to say or ask if it's sustainable.My problem in terms of sustainability with it's click through business model is that i don't see a tangible product and what is to say, next year we will not be clicking through at the next big thing to come out of a Harvard Dorm or Silicon Valley garage(not that i foresee the immediate demise of facebook). Otherwise point taken

 

[snoopdoggydog]

all that when the recommended share price for facebook is $13.80 & zuckerberg is looking at switching facebooks listing to NYSE

 

[siraman]

all that when the recommended share price for facebook is $13.80 & zuckerberg is looking at switching facebooks listing to NYSE

Facebook’s revenue growth has been slowing in recent quarters

Which worries me,and..

The company’s current price still implies very high annual growth rates. Thomson Reuters Starmine, meanwhile, using expected growth rates of about 10.8 percent over the next decade, values the shares at $9.59, or less than one-third of its current price.

And i'm no investment analyst, but my very,very,absolute basic fundamental analysis of this stock/share(hehehehe...gut feel) tells me I should not put the house on the table.Quotes from http://mybroadband.co.za/news/business/50737-facebook-shares-take-another-beating.html

 

[patrick]

Also not an expert but an IPO with an initial P/E of 100 should have told everyone to run and hide... Even today Google is at a far healthier p/e of +- 17, and they have more potential for growth than the one trick pony of facebook...