What is facebook stock worth?

**Naples09** · 08-17-2012, 07:16 PM

It depends on how you value it and what they report as revenue growth next quarter, but I've seen reports of $6-$9 or $16-$24 a share as a fair price.

**marvholly** · 08-18-2012, 06:17 AM

Originally posted by disneysteve View Post

Facebook hit a new low of $19 today, half of the IPO price. Any guesses on what is actually a decent price? I'm not looking to buy. Just curious.

IMO: Whjat's a roll of toilet paper currently cost in your area, Steve? I have some on sale for 0.20/rol in a 4 roll pack around here in metro Chicago. That is what I think Facebook is currently worth.

There is a BIG issue w/proper corp management. Zuckerman is an idea person, VERY into IT geekdom. He is NOT proven a manager. He cannot deal w/the sharks......sorry, pros, in the media, wall st. & financial world. thus those BIG guys don't want to touch him w/at 35 foot pole.

**97guns** · 08-18-2012, 06:30 AM

all these new dot com stocks are ALL scam stocks, zinga and groupon come to mind, they ipo them, run them up and insiders dump. look at zinga, the ceo dumped every one of his shares he owns ZERO now

**kv968** · 08-18-2012, 08:59 AM

Using a decent forward P/E ratio of 24 and estimated earnings, I'd say it should be around $14-16. But with more shares coming off of the lock-up period in November, I wouldn't be surprised if it went lower than that.

**dontgopoor** · 08-19-2012, 01:02 PM

DisneySteve - Morning Star seems to have done a nice job of assessing Facebook since its pre-IPO days. See their latest write-up - Patient Investors Should Place Facebook on Their Radar

**bjl584** · 08-19-2012, 01:26 PM

Originally posted by disneysteve View Post

Facebook hit a new low of $19 today, half of the IPO price. Any guesses on what is actually a decent price? I'm not looking to buy. Just curious.

Short it to $10.

1) Half the accounts are fake.

2) The ad click percentage is near nothing

3) Facebook doesn't produce a tangible product

4) Zuckerberg said that he isn't running the company for the benefit of the shareholders

5) A flood of new sharers will hit the market in the fall

**disneysteve** · 08-19-2012, 02:09 PM

Originally posted by bjl584 View Post

3) Facebook doesn't produce a tangible product

This is what confuses me. I love facebook. I use it pretty much every day. But it's FREE. It doesn't cost me a penny to use it. They aren't making a penny by having me use it. Unless they can figure out a way to charge users without losing them, I don't see them making any money.

Yes, I know there are ads on the screen, but I don't look at those and I certainly would never click on one.

I do wonder about the games on facebook. Does facebook charge the companies that create the games to feature those games on facebook? For example, I play the Caesars casino game. Is Caesars paying facebook a fee for that? I'm guessing the answer is yes, so that's a way facebook makes money, though not from me.

**kv968** · 08-20-2012, 08:44 AM

Originally posted by disneysteve View Post

I do wonder about the games on facebook. Does facebook charge the companies that create the games to feature those games on facebook? For example, I play the Caesars casino game. Is Caesars paying facebook a fee for that? I'm guessing the answer is yes, so that's a way facebook makes money, though not from me.

About 85% of Facebook's revenue comes from advertising and the other 15% mostly comes from Zynga by either processing fees and/or credits people buy to use in the games (i.e. Farmville).

**disneysteve** · 08-20-2012, 09:05 AM

Originally posted by kv968 View Post

About 85% of Facebook's revenue comes from advertising

This really baffles me. Do companies really find that advertising on sites like this accomplishes anything? Are there that many users who buy things as a result of seeing them advertised on facebook or other sites? I barely even notice the ads and would certainly never click on one.

**bjl584** · 08-20-2012, 09:38 AM

Originally posted by disneysteve View Post

This really baffles me. Do companies really find that advertising on sites like this accomplishes anything? Are there that many users who buy things as a result of seeing them advertised on facebook or other sites? I barely even notice the ads and would certainly never click on one.

Most of the studies that companies did concerning this were based on the number of users that Facebook has. The issue now is that news came out that a lot of the Facebook accounts are fake, duplicates, or spam. There are actually a lot less people clicking around on Facebook than was previously believed. I think that the advertisors are asking themselves the same question that you are.

**kv968** · 08-20-2012, 12:19 PM

Originally posted by disneysteve View Post

This really baffles me. Do companies really find that advertising on sites like this accomplishes anything? Are there that many users who buy things as a result of seeing them advertised on facebook or other sites? I barely even notice the ads and would certainly never click on one.

It must accomplish something since companies are willing to pay for the advertising, but I'm with you...I don't even notice them let alone click on them.

The ironic thing is Facebook really is a marketers' dream with all the information they have about the people who use their site. The problem is they can't really monetize (i.e. sell the info) it without alienating the very people who use the site.

**YLTL_Dan** · 08-20-2012, 04:41 PM

Google figured out how to make money off of providing a free service, but Facebook is yet to find their formula. The problem for FB is people go to Google for a very specific purpose and Google can serve up exactly what they're looking for where people just hang out on Facebook.

The best way I've heard it is this: Facebook is like a dog park where people hang out. You can put up advertisements for dog food, but it's not likely to translate into much. Google is like a store where people go to buy dog food... all they have to do is serve up the correct product!

It will be interesting to see if FB can figure it out... I don't plan on buying any stock, but I don't think it's beyond the realm of possibility for them to still succeed.

**sblatner** · 08-20-2012, 05:29 PM

Our teenager has already told us that something better will come along and FB will go the way of MySpace. Maybe not quite like MySpace as I think FB has more users but if a teenager is already saying it is passe, it might be true.

**Like2Plan** · 08-21-2012, 05:12 AM

Originally posted by disneysteve View Post

This is what confuses me. I love facebook. I use it pretty much every day. But it's FREE. It doesn't cost me a penny to use it. They aren't making a penny by having me use it. Unless they can figure out a way to charge users without losing them, I don't see them making any money.

I was just pondering FB, myself. I totally hate FB and yet I have an account (finally opened an account last Nov) and I also visit every 1 or 2 days. It seems like more and more companies are pushing folks towards FB in order to get some of the best deals. Southwest recently offered a code for 1/2 price airfare. Marriott sometimes offers special hotel rates and so on. FB has a lot of momentum--ie a lot of folks already signed up and using it. Maybe it's not a fully formed commercial venture, but I think there is still a lot of potential. (I still don't know if I would ever buy the stock.

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What is facebook stock worth?