Goldman deal values Facebook at $50bn

[superfrank]

panic buy to stop competition in it's tracks - there's only so many times they can do this.

After launching on Android last week and adding one million users a day, it became obvious that this wasn't just a photo sharing app - it was a competitive social network, and the concern may have been that there would be rival bids.

[Euler]

I was amazed to learn that less than two weeks ago they raise funding which valued them at $500m. So the VC that arranged that has doubled his money in two weeks!

Bubble, bubble, bubble....

[steven1976]

Install then uninstall for me on that app.

[PeterLe]

I just can't see how they would value a company at 50bn??
I personally dont use Facebook (although the missus does)...half the time people dare posting on their wall about what they are having for their dinner and how much they love their kids? Who wants to read that? I know a few people this year who have left Facebook and I think it will be very different in 5 - 10 years...

If you look at some of the floatations of the early dot com companies (Lastminute for EG), they floated at 570M and hadn't even made a profit! in 2001 they made a LOSS of 54m!

Would I invest in Facebook - not a chance, i just wouldn't sleep at night; money isn't easy to come by, that to me would be too high a risk..

Edit : Lastminute : At the peak, the shares rose to 511p on day one valuing them at £768m!

[superfrank]

the problem is that it is still not easy to make money even when you know that fundamentally is price is way out of line.

a few years ago there was a short squeeze on VW shares when the shares increased by 400% in a couple of days making VW technically the most valuable company in the world. i shorted them but had to increase my margin deposit before the price fell back down.

these things always go much further than we think (e.g. the dotcom bubble, crude at $147, bank shares pre-credit crunch).

[Euler]

Apple's market cap went through $600bn recently.

I do worry that we are in another tech bubble and there will be no escape if this one busts! I guess you can't stop people from buying things at vastly inflated levels though, can you?

Apple only breached $500 in Feb and they are over $600. It's amazing to think in 2003 they were $7

[superfrank]

http://instagr.am/

WIRED - Instagram’s Buyout: No Bubble to See Here
http://www.wired.com/epicenter/2012/04/ ... ram-trend/

it seems that the way to success is just gaining a large number of users - you don't even need a plan of how to turn that customer base into revenue, let alone profit.

[CaerMyrddin]

Facebook is helping inflate the buble, buying these startups, isn't it?

[Will Sharpe]

Apple's market cap went through $600bn recently.

I do worry that we are in another tech bubble and there will be no escape if this one busts! I guess you can't stop people from buying things at vastly inflated levels though, can you?

Apple only breached $500 in Feb and they are over $600. It's amazing to think in 2003 they were $7

I wanted to short Apple when they breached the 200 mark. Good thing I did'nt

As always (in these situations)it's the timing that is difficult. I suppose there were was a good deal of money invested on the short side waiting for SJ to pass. Don't think any of them managed to cash out on that, instead they found themselves to be on the wrong side of the trade. In fact that could be part of what's driving the shares now.

In ten years time it may well be obvious that Apple's demise began with SJ's departure but it doesn't show yet.

If you're interested in a good read I can recommend the Big Short by Michael Lewis http://www.amazon.com/The-Big-Short-Doo ... 0393072231.

[Iron]

Facebook tests 'pay to promote post' tool - http://www.bbc.co.uk/news/technology-18033259

They're having a laugh!

They might be going down the same road as another company which alienated lots of their customers by levying silly charges...

Jeff

[jimrobo]

Apple's market cap went through $600bn recently.

I do worry that we are in another tech bubble and there will be no escape if this one busts! I guess you can't stop people from buying things at vastly inflated levels though, can you?

Apple only breached $500 in Feb and they are over $600. It's amazing to think in 2003 they were $7

PLenty of analysts have recently predicted them to be the first trillion dollar net worth company. scary stuff!!! Although they do make great gadgets!!!

[Euler]

I've got hold of the investor roadshow presentation: -

http://facebook.retailroadshow.com/launch.html

[superfrank]

Facebook boosts number of shares on offer by 25%
http://www.bbc.co.uk/news/business-18086426

[Iron]

The Facebook Offering: How It Compares - http://www.nytimes.com/interactive/2012 ... pares.html

[Euler]

Interesting discussion: -

http://www.bloomberg.com/video/92899127/