Showing posts tagged ipo

Facebook is a binary stock

I don’t know if Facebook is overvalued right now, it seemed a stretch at $100Billion and has been “corrected”, but then Google used to trade at many times sales also. Cisco was once worth nearly 5 times that (that WAS overvalued). 

What is true (for sure), is that Facebook is a risky stock. But risky in both directions. Three years ago, the business had hardly any sales, it is now selling 3,700 million dollars per year and growing. It was a megatastic war chest of cash and a brand name that spits in the face of most other online properties. 

http://tctechcrunch2011.files.wordpress.com/2012/05/screen-shot-2012-05-03-at-3-07-16-pm.png?w=640

So - some heads will roll at Facebook for the IPO fiasco and disclosure baloney, they’ll first be unfriended in the media and then blocked by Facebook, but their egos will be massaged with millions they made. And, the business will go on…

Facebook will or will not dominate social networks and related advertisements/ gaming and music for the next decade. If you think it will BUY, if you think it  won’t, SELL…take your pick