Shareholders suing Facebook

[CrazyCapnMorgan]

So, about that Facebook...

From the first two paragraphs of the article:

"The fallout from Facebook Inc's messy initial public offering widened on Wednesday as shareholders sued the social network and its bankers while a trading firm revealed a massive loss on the shares and threatened to seek "remedies."

The Nasdaq stock exchange also came under further pressure as a source close to the situation told Reuters that NYSE Euronext had opened discussions with Facebook about a potential stock listing there. Nasdaq also faces litigation from angry investors."

You can read the rest at:

http://finance.yahoo.com/news/shareholders-sue-facebook-nyse-comes-015429732.html

So, what you think about the situation Escapists? What impact do you think this will have on Facebook's future? Personally, I don't have a Facebook account so I'm not inclined to worry much, thus the situation does not affect me much.

 

[Supertegwyn]

I hope Facebook burns.

I don't hate the site, but the way those hipster shits go on about it.....

 

[Keoul]

I hope facebook burns too
Not out of spite of course, but to watch all the facebook junkies reactions, it will be hilarious XD

I still don't get why they're getting sued though, a company goes into the market, it's value is lower than estimated, therefore the logical course of action is to sue?

 

[Nouw]

Yes, burn the site that keeps millions of people in touch with each other! BURN IT!!!

 

[Esotera]

Zuckerberg is taking most of the money and leaving facebook to the winds. He's done this at what looks like the height of its popularity (give or take a few hundred million users) and before anyone clues on to the fact that it doesn't have any source of revenue.

The stock is going to fall a lot, but he is one shrewd man.

 

[Shoggoth2588]

...What kind of moron would buy stocks in Facebook? I'm serious too. I don't buy/sell on the stock exchange and am downright ignorant when it comes to buying/selling stock but I think I know the basics that is;

You buy the shares of a company (preferably when prices are low) wait for the prices to rise and then sell off those shares in part or in whole for profit. The keyword there being 'company'. What does Facebook offer? What does Facebook make? Facebook isn't GE, Microsoft, Apple...hell, it isn't fucking Brusters. Facebook doesn't produce a product so there's no reason to invest in the thing to begin with because it doesn't make anything that people would pay money for. Hell, E-Harmony would have better luck in the stock market. You could make a stock-exchange based around every internet porn site if you wanted to.

It makes no sense for anyone outside of the Facebook staff to invest in the website. To me anyway...I know nothing about running a website. I do know that The Escapist sells t-shirts and other things...The Escapist has a source of income. Facebook? Not so much.

...

Maybe The Escapist should get on the stock exchange?

 

[Shivarage]

...What kind of moron would buy stocks in Facebook? I'm serious too.

Very rich morons... very rich morons who don't know what an "internet" is, listened to the media hype and bought shares in what is essentially their own information =P

 

[Timberwolf0924]

so it started at 45 a share and is now down to 30... thats funny, wait a few months people, we'll see what happens I suppose

 

[elvor0]

...What kind of moron would buy stocks in Facebook? I'm serious too.

Very rich morons... very rich morons who don't know what an "internet" is, listened to the media hype and bought shares in what is essentially their own information =P

Didn't a load of people make loads of money a couple of years of ago from facebook after buying shares?

Well fucking Bono is the only person I can find with the article on, but I'm sure there were more.

http://www.telegraph.co.uk/technology/facebook/8260313/Bonos-Facebook-investment-boosts-his-fortune.html

 

[Melon Hunter]

Financial experts were warning that Facebook had been overvalued for a long time before the floatation. Most have been saying that $104 billion was far too high a valuation, and that $50 billion is the absolute minimum it could fall to before buying and selling shares in Facebook is worth your time. If the shareholders had listened to them, rather than getting caught in the hype that inflated the company's worth far beyond any useful figure, then they wouldn't be in this mess in the first place.

 

[MammothBlade]

Hahaha, I definitely saw this coming. Facebook was massively overvalued. Can't say I sympathise too much with the people suing as they made massive errors of judgement, but if this were to mean the beginning of the end of facebook, I'd be most amused.

 

[Matt King]

oh shit, you put fallout in that article, i think bethesda is getting ready to sue your ass

 

[dyre]

...What kind of moron would buy stocks in Facebook? I'm serious too.

IIRC, Facebook allegedly gave information that is needed to gauge the value of the stock to certain investors, especially large clients (corporations, I guess), while withholding that information from small investors. So the large clients knew exactly how much the stock was worth, while regular investors had an inflated view of its value. So, the large clients knew when to buy and when to sell (so, not morons, just morally corrupt), while the small investors got fucked.

 

[Worgen]

I saw this coming, I mean facebook doesn't make anything and the way it makes money is rather strange, since it went public the only way for it to make more money is more ads and if I remember right, that is kind of what killed off myspace, putting more and more ads on it.

 

[BushMonstar]

I think facebook's message here is this: If it's going down, so is everyone else. It's going down with a bang.

 

[Shivarage]

Didn't a load of people make loads of money a couple of years of ago from facebook after buying shares?

That was "years ago" thus makes it irrelevant since it was small then

It appears facebook is at it's prime and they decided to go public and sell out, you would think the current owners are bailing before the bubble bursts..?

captcha: white as snow

 

[elvor0]

Didn't a load of people make loads of money a couple of years of ago from facebook after buying shares?

That was "years ago" thus makes it irrelevant since it was small then

It appears facebook is at it's prime and they decided to go public and sell out, you would think the current owners are bailing before the bubble bursts..?

captcha: white as snow

Well it was last year it payed out anyway, granted he put the investments in before then, but it wasn't small last year. I'm not a stock person though, so I don't really know much about what went/going on at the moment, I mean it seems like it would be sensible to invest in facebook given its popularity and size, but then I don't do stocks.

 

[Lieju]

...What kind of moron would buy stocks in Facebook? I'm serious too. I don't buy/sell on the stock exchange and am downright ignorant when it comes to buying/selling stock but I think I know the basics that is;

You buy the shares of a company (preferably when prices are low) wait for the prices to rise and then sell off those shares in part or in whole for profit. The keyword there being 'company'. What does Facebook offer? What does Facebook make? Facebook isn't GE, Microsoft, Apple...hell, it isn't fucking Brusters. Facebook doesn't produce a product so there's no reason to invest in the thing to begin with because it doesn't make anything that people would pay money for. Hell, E-Harmony would have better luck in the stock market. You could make a stock-exchange based around every internet porn site if you wanted to.

That's the way it seems to me too.
I've been assuming I MUST be missing something, after all, as far as I'm concerned, stock market runs on magic and willing suspension of disbelief.

So it doesn't have to follow common sense, I guess.

Although, I don't use Facebook, but don't they get money from ads?

 

[Dryk]

I still don't understand why they would float it in the first place. Were they running out of money, or did they just want even more?

 

[Shivarage]

It seems like it would be sensible to invest in facebook given its popularity and size, but then I don't do stocks.

For stock to pay off, the business has to get bigger or make more money to increase the value

I personally don't see how it could get much bigger without swallowing the whole population, then again I'm not gambling in stocks so I don't need to worry