Emporer’s new clothes springs to mind…

I was surprised the shares sold so quickly at the flotation price – people have very short memories to have forgotten the dotcom bubble so quickly.

Eircom springs to mind

What other tech companies?

Great article!!

Thank’s for that link Daniel. I agree, a brilliant article and would urge everyone to read it, and see just how much, and how easily, the parasitic elites of the world are screwing the rest of us.

Unreal!

It’s not rocket science, read a few books, watch the exchange indexes to see how it works. People should spend some time figuring out how it works, if only to have a better understanding of how we’ve slid into the sh*t.

its funny alright, I remember about a year and half ago, everyone suddenly became an expert economist.

Yeah the price will stabilise high enough and people will stop caring about the second day of trading. It is usually silly for a bank to over price such a big IPO as Facebook but maybe it could be revenge for Zuckerburgs apparent blasé attitude to the whole process with them.

Was watching news reports from the states on the like of Bloomberg and they say the same thing, that although it wasn’t a great IPO that it will take months before we know if it was a success.

The value of FB is not calculated from third party advertising, it is generated from their collection of data which can be mined for marketing purposes. Marketing databases are very expensive to access for marketing companies, and FB has one of the biggest. As it’s been said before, the genius of FB is the way it’s made the users think that they’re the customers, when in fact they’re ( or at least their input is ) the product.

John, correct me if I am wrong but haven’t other search engines and tech companies being doing that for donkeys years, I don’t see how you can equate that to a €100 billion valuation when their only revenue stream STILL remains the pretty ineffective and expensive small ad spots?

I’m not claiming the valuation is correct, just that the valuation is not based solely on third party advertising revenue. It is based to the user data collected and the potential revenue this will generate when sold on to marketing companies for data mining and profile purposes.

Yep, other tech companies have been here before, but FB dwarfs them by sheer scale. No other company, including Google, has been able to collect so much data worldwide in a standardised database format. The question of whether the data is useful or not remains to be answered.

You’re correct of course, however, I still fail to see how a company can value itself to such a degree based on probabilities of probabilities. Not saying you agree with them or anything, I just really believe the tech sector are living in cloud cuckoo land. Their grand notions of self worth have them spiraling some of the biggest names in the business towards another big burst, a mere decade after a .com bubble. It makes me question the intelligence of the human race more than anything else. It seems we’re not programmed to learn from mistakes!

Yes, it’s all just speculative value, not real “worth”. Musical chairs, everyone’s happy until the music stops, and the share price crumbles. Boom and bust wins out over steady and sustainable every time.

Why? Because he’s successful?

Bono cashed in on Friday. He’s made his money.

Jealous Begrudger

Would Bono be as fast to Invest his money in broken Ireland, eaten bread soon forgotten