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Totally overhyped and valued. Users proven not to use the advertising. Tis a bubble is what it is.

$8 in a year. No mobile advertising and clients like GM switching off, where is the revenue coming from?

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I spoke to a colleague based in Silicon Valley who's lost a lot of money over the years in dodgy investments from equities to houses. Owning the right shares to him was like driving the right car. You have to do it to be with the in crowd.

"Do you want to buy Facebook shares?" I asked him.

"Everyone wants to buy Facebook!" he replied, incredulously. :o

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I got to say that this is beginning to feel like one of those documentaries about the 1929 Crash.

You know, where a certain stock reaches a crazy new height and then declines - APPL - followed a few weeks later by another stock reaching even crazier heights - FB.

People flooded into the markets, the narration says, with nearly everyone thinking the market could only go higher... and then goes on to say how the markets then crashed.

I think if you watch the documentary on the '1929 Stock Market Crash' I think, IIRC, it talks about people getting excited about certain stocks reaching frenzied highs - a steel company I think, some of the banks and the telephone companies - with, again IIRC, the steel company never recovering after it then crashed a few weeks later.

Ah, yes - the Carnegie family's US Steel was the Facebook/Apple company of its day. Share price went bubblistic, then crashed and the share price has done nothing ever since.

U.S. Steel's share price hit $261.75 -- $2,617.50 in today's dollars -- in 1929. Three years later, it bottomed out at $21.25.

http://old.post-gazette.com/businessnews/20010225ussteel2.asp

Edit:

The signs are always there to see with hindsight - some can see them at the time but, like the Emperor who has no clothes, only some can truly see what is going on.

Edited by The Masked Tulip
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I got to say that this is beginning to feel like one of those documentaries about the 1929 Crash.

You know, where a certain stock reaches a crazy new height and then declines - APPL - followed a few weeks later by another stock reaching even crazier heights - FB.

People flooded into the markets, the narration says, with nearly everyone thinking the market could only go higher... and then goes on to say how the markets then crashed.

I think if you watch the documentary on the '1929 Stock Market Crash' I think, IIRC, it talks about people getting excited about certain stocks reaching frenzied highs - a steel company I think, some of the banks and the telephone companies - with, again IIRC, the steel company never recovering after it then crashed a few weeks later.

Ah, yes - the Carnegie family's US Steel was the Facebook/Apple company of its day. Share price went bubblistic, then crashed and the share price has done nothing ever since.

http://old.post-gazette.com/businessnews/20010225ussteel2.asp

you dont need to go back that far, the dotcom/tech/telecom boom was far more excessive/mental than the valuations reached in the 20s and way in excess of the valuations of these darlings booming/listing in the last year or so

Edited by Georgia O'Keeffe
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I got to say that this is beginning to feel like one of those documentaries about the 1929 Crash.

+1

Either that, or the Emperor's new clothes. People are lining the streets cheering and clapping, but surely a good number of them feel they need to be seen to be positive but actually don't believe it could ever possibly be worth the valuations implied by the stock price.

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+1

Either that, or the Emperor's new clothes. People are lining the streets cheering and clapping, but surely a good number of them feel they need to be seen to be positive but actually don't believe it could ever possibly be worth the valuations implied by the stock price.

I suspect silicon valley veterans working for FB will cash out ASAP.

I recall with Cisco some staff who, at the height of the first bubble, took the options on their stock but did not actually sell them until several months later - they thought the dip in stocks would only be temporary and that the stock would go back up and above its previous height.

Alas, between taking the options and selling the stock the market crashed and some ended up owing hundreds of thousands in taxes.

IIRC one couple could have made millions but ended up paying about 2 million in taxes with no penny to be seen.

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You know, where a certain stock reaches a crazy new height and then declines - APPL - followed a few weeks later by another stock reaching even crazier heights - FB.

As much as I hate apple, you could make a reasoned argument for their share price. Likewise Google.

Facebook on the other hand !!! This is nonsense. Everyone's getting in because everyone's getting in. All hoping to make a short term profit on other people's stupidity. But they're all the same.

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I honestly cant see where this can go wrong? :ph34r:

lets all pump our money in to Facebook and make a killing

I think if you watch the documentary on the '1929 Stock Market Crash' I think, IIRC,

that was a very good documentary, one of the big investors said

"when the shoe shine guy was trying to give ME investment advice, i knew it was time to get out of the market"

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I really can't see why regular investors without access to the pre-market would touch this, however friends who I thought had sensible heads have been talking about buying FB shares.

But what do I know, I was saying houses were overpriced and due for a crash back in 2003 and we're still waiting!

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Totally overhyped and valued. Users proven not to use the advertising. Tis a bubble is what it is.

$8 in a year. No mobile advertising and clients like GM switching off, where is the revenue coming from?

GM pulling ads says more about GM than FB.

Here: http://adage.com/article/digitalnext/gm-a-facebook-problem-a-brand-loyalty-problem/234817/

"GM will reportedly continue to invest nearly $30 million to maintain a Facebook presence and develop applications, which may turn some of the brand's 3.9 million fans into brand advocates"

Not exactly switching off.

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They are milking this aren't they? Mysterious delay to trading building up the anticipation in those who are keen to buy... keep them waiting, make them desperate to buy and then...

Good chance the systems won't cope and there'll be several halts.

I'm imagining that all the bids are currently chasing the asks up the ladder and there's no cross! Someone needs to hit the bid...

Any minute now... :D

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