Forum Post: FaceBook to sell out on wall street
Posted 12 years ago on Jan. 27, 2012, 11:48 p.m. EST by MattLHolck
(16833)
from San Diego, CA
This content is user submitted and not an official statement
I saw a net companies "go public" before
oddly this ends up drastically altering a company
and restricting behavior within the company
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Namebook
ya ive seen that with hidden valley ranch, that stuff used to be delicious 20 years ago when it first came out, now after selling to corporate, they put a bunch of crap in it, and it tastes nothing like the homemade mayo and milk mix, along with alot of other corporate products.
that happens when a company turns from protect to profit motives
actually that is what happens when you take a company owned/operated and sell it to a company operated by MBA's CPA"S and JD's....it happened with Wendy's, and with Hershey's....both Milton Hershey and Dave Thomas would fire the entire management team if they were alive today......
It isn't owner/operators who create the problems in companies....it is those who think they know better than the creators how to create.....
well said
although this new financial set may well become the owners
sure...but the intention changes......I remember the weeks following Dave Thomas's death....prior to that he mandated that all Wendy's supplies be US sourced, after, they started using imported items......
and Hershey's.....too many changes to even comment on...
Ive heard
it takes 10 pounds to grain to produce one pound of beef
that happens when a company turns from protect to profit motives
Once Facebook goes 'public', they will be forced to out source pretty much everything they do, because they will have a fiduciary responsibility to their shareholders to maximize profit by reducing costs. As a private company, Zuckerberg could do whatever he wants. Not any more.
If you sell a portion of your company I think it is pretty reasonable for the new owners to expect to have say in how the company is run.
only if they own more than controlling interest.....which Zuckerberg won't sell.....count on that
with the other company that went public
many suits joined the team and insisted on a dress code
and this after they put out the timeline which everybody hates and will result in a decline in stock price much like netflix. but i do hope a bunch of wall street people invest and lose.
the stock brokers will still make their cut
yes i know..but it will hurt all those 401k's for the working people when it crashes in a few years.
facebook may well be out teched
if the media continues to expand
or people realize if they had used their names when posting
their friends could have found them with a search engine
any 401K that invested in a company like Facebook would be one I would switch fund management on in a hurry......
can you do that when your employer only has one fund manager?
it depends, talk to your benefits administrator......you should be able to mov your investments around, although.....with some there are limitations.....you would have to contact an attorney for more info if you cannot do it through your employer directly..
With an estimated market capitalization of $100B, shares of Facebook would quickly make their way into index funds and large cap funds which is what the majority of 401K's and pensions invest in. So if Facebook looses value, it would not just be "Wall Street People" who lost money, it would be also be regular people and retirees with 401Ks and other savings.
then those people running those funds are criminal.. its easy enough for me to see that this will fail.. and they are suppose to be experts! if they knowingly allow facebook into index funds,, they knowingly thieve from the 99%
Also, I don't think you can say for sure it will fail. Look at Google which was initially valued at $30B and is now around $180B. Those who got in early on Google have seen returns of 600%
yes.. but google is a search engine it actually provides a service facebook is nothing,, does nothing,, offers nothing.. its future is based on whims and fancy
The product that both Google and Facebook really sell is advertising. Google is a lot more than a search engine obviously. I would even say Google has more serious competition from Yahoo than Facebook has from anyone.
that is true. I just think that it will fade into being a photo sharing site in a few years, nothing to take very seriously. and of course.. i suppose they count all the accounts.. not taking into account the millions that never log in. and facebook itself can create false names to boost that number. so maybe your right if they do that whenever it seems numbers are lagging they can keep the money rolling in.
Money is measured by ads clicked. They can't fake that. If ad companies aren't getting hits, they will stop paying for advertisement. The number of total users is only indirectly important, what's really important is the number of total ad hits.
i see.. i should make myself a web page if thats all it takes to make money off of it!
Google is a core technology that is needed on the Internet. Facebook is a toy. Facebook keeps changing every once in awhile because they are scared of the competition. Google is solid as a rock. It has all types of technologies, one of which is social networking. Facebook's plan was to create an online OS by being a platform on which to run apps. This failed miserably. Honestly, Facebook is very fragile, and they lost the trust of their users. If anyone comes with a better software that it more trustworthy, Facebook will disappear very fast.
But until then they will make money, and that is what capitalism is all about. No company lasts forever but it can still provide value and ROI for its investors while it does. Does Facebook have any real competitors at this point in terms of page views? Until they do they will make some serious money for its investors - the 1% and 99% alike.
maybe not forever but most last about 80 to 100 years.. the ones used as a base for 401k's anyway and they are going to put facebook in the same index fund?
A large cap index fund, yes. And large cap index fund, by definition, is a fund of all companies with a market capitalization over a certain amount. If Facebook is indeed valued initially at $75-100 billion as being estimated it would go right into the S&P 500 and therefore into all those funds that index the S&P or similar large cap indexes.
Page views is not all that is important. Facebook has one of the lowest percentage of ad clicks per page view of any site on the Internet. Most Facebook users do not click ads even though those ads are highly targeted. Most Facebookers simply use it to post photos or write messages.
As an investment, I think it has run its course. It won't grow much bigger than it is now. In my opinion, it's going to go down in the next few years. I believe Google Plus will replace it. It's a much better platform and it's gaining traction everyday. Apple is also coming up with something soon. Don't forget, Apple and Google have operating systems in the mobile market. That's a big leverage for them. It makes it easier to push their platforms. Apple and Google are all around companies. They do many things. Facebook is a one trick pony. Those types of companies go down very fast in the world of technology.
Index funds, by definition, index the market. They are not actively managed. If Facebook is an S&P 500 company because of it's market capitalization, then it automatically goes in all those funds which are made up of large American companies.
another reason wall street has to change. how can it be that a company doomed to failure be included in with companies that have proven thier worth. is it just because of temporary money? facebook has only been around a few years.. produces nothing,, its popularity is based on whims and wall street will risk the money of the working people on this just because ? wtf.
I don't do Facebook and I'm just wondering how a site like that generates so much income since it's free to join and maintain an account. Enlighten me please.
i do not know... there are a few advertisements.. ive been told it makes money by counting how many times the ads are clicked on other wise i do not know.
wow, there must be a lot of really stupid people who would click on those ads to generate that much income! I'm in the wrong business! Seriously though, I'm sure you are right to some degree. But, it really seems truly ridiculous that Facebook could earn that much passive income- doesn't it?
yes it seems that way.. it could be that they get their money some other way that is not obvious to most.. i mean the guy did have a family dinner with the president.. but they are saying it will start at 100billion! there are only 800 million users!
hmmmm that's certainly interesting! Government contractors make a lot of money because most their contracts are over inflated ( I know because I had a gov't contract once). Just something to consider (and another reason I don't use FB).
Like Myspace before it, Facebook is data mined and the info is sold to marketing firms.
That's what I figured and exactly why I don't use it. I don't understand people who are willing to give up their privacy for the sake of a social network of cyber friends who probably wouldn't even attend their funeral. Strange.
Good. If you use it. Then fill it with demands and support for reform. Let them mine that.
that is why you need to maintain a knowledge of where and how your money is invested....mutual funds are really not the best place to be....regardless of what the "experts" may tell you......know the companies you invest intricately and if they change management, know about that too, if they change product lines, or markets, make capital purchases, etc......you really can't be that diligent with a mutual fund
I was talking about passively managed index funds, not mutual funds.
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I don't think Zuckerberg plans on giving up controlling authority or shares...it shouldn't effect it much
You could just start your own social network site...
I have hopes for facebook
because most members use their real names
making the system ideal public voting
which if done openly by name, cannot be rigged
It could be rigged with ease.
ah
but anybody could verify the validity by looking up the prople that voted publicly by name
A person's name is not unique. There might be more than one MattLHolck in the world. It's also possible to create more than one account with the same name on Facebook.
You need more than a person's name to establish uniqueness. You need something like their social security number.
it's easy to verify the vote
What?
the vote by contacting the voter
I don't understand your last two comments. Sorry.
if people voted by name publicly
everyone can take that data and check the legitimacy of the vote
Like I said earlier, this wouldn't be robust because a person's name is not unique.
voters could be contacted
You want everyone on Facebook to provide their address or/and phone number for contact?
A much better idea would be to devote a website for the sole purpose of voting.
probably
facebook may not be up to conductance of voting power
the task of voting by name is not complex
Sigh... It is. A name is not unique, and it can be forged. Do you know anything about programming and the Internet? There's also the problem of vote secrecy. Believe me, Facebook is NOT the platform to do this with. Don't waste time on this bad idea.
facebook could set up a voting system fairly easily
people could vote thee by name if willing to provide a contact number
the vote could than be entrusted to the public
Again, the public does not trust Facebook, and it's much better to create a software dedicated to this complex task than to use a site which was not designed for this. Believe me, I'm a programmer.
face book is already establish
there is no need to reinvent the wiki
There's not enough public trust in Facebook to turn it into a voting engine. Facebook users already think the government has access to their information, they certainly don't want the government to know who they are voting for. In addition, this would force many people who refuse to use Facebook to open a Facebook account.
Nobody's talking about a Wiki. What's needed is a truly robust platform for Internet voting. It's better to have dedicated software for this one task then to use another software that was designed for something else.
Online voting is a very complex issue. There are all kinds of aspects that you fail to recognize.
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Yeah...sorry, I think the privilege of voting requires making the effort to travel to the polling place and casting your vote.....
what should be required is a finger or thumb print on each ballot and a scan of that before the vote is registered, and a verified ID presented before voting.....that would prevent double voting, illegal alien voting, and the voting of the dead...all of which occur each year....
i think that sorta defies the concept of an anonymous vote .. all voting must be anonymous for the system to work. havent you read history
perhaps, I can see, and concede that point....but, then I guess we could have a thumbprint verification PRIOR to filling out the ballot with some sort of non specific identifying mark on the ballot that it WAS verified by positive ID of the person casting the ballot,
isnt that covered by having to show your id and voter registration before you enter the polling station?
in many polling places you don't have to show ID
the responsibility of voting
if one votes publicly, they themselves can stand by it
and they can be targeted by thugs and criminals...voting is a private matter..
and yes, I agree it IS a responsibility...........and privilege
they can't be targeted while in the public eye without repercussions