Three Reasons to Avoid the Facebook IPO

Comments (4)

  1. says:

    Facebook currently has only one percent of the advertising market, and is already profitable to about $4 billion a year.
    The growth rate of the business is not reliant on expanding the already insane 850 million user base, it is reliant on monetizing this base. I don’t have a position in Facebook, and don’t intend to at the IPO sine I agree Facebook will be way overvalued at $100/share on the IPO pop… However, with a current estimated IPO valuation of 100 billion, and 100% growth in money coming in (not users) the PEG is at a very respectable “1” which implies proper valuation.

    When Google IPO’d the p/e ratio was way over 100, did you miss out on that one, too? I will definitely buy Facebook once the price stabilizes. It is the Internet within the Internet and Google cannot search its database.

    I humbly disagree with the soft argument you provide here as the hard data seems to suggest a more sanguine future, but we shall see!


  2. Bryan says:

    Another reason to avoid the Facebook IPO is the autocratic management style of Mark Zuckerberg. He is in the process of forcing everyone on Facebook to switch to the “Timeline” format. Whenever the management (Zuckerberg) of Facebook decides to change something the people who use Facebook have no choice but to acquiesce to it. Zuckerberg is, in a way, like Henry Ford. Ford said “You can have a car in any color as long its black.” Zuckerberg believes that there will never be any competition to Facebook and that he can do whatever he likes with it.


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  4. Dennis Gelinas says:

    Facebook is fast becoming the “Big Brother” in an increasingly pro-police state.
    They are already sharing info with the Gov. and can morph into a Gov. organ at the flip of a switch.
    I’d be very careful what I posted, if anything at all.
    Whatever you say can and will be used against you someday.


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