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FB - Facebook

post #1 of 1364
Thread Starter 

 

Facebook Inc. operates a social networking website. The Company's website allows people to communicate with their family, friends, and coworkers. Facebook develops technologies that facilitate the sharing of information, photographs, website links, and videos. Facebook users have the ability to share and restrict information based on their own specific criteria.

Over at MarketWatch, Dan Gallagher has a walk up to Facebook’s IPO filing:

Facebook is widely believed to be readying its first initial-public-offering papers this week, with its prospective IPO looming as one of the biggest market debuts in history.

Bloomberg News

The documents to be filed with the U.S. Securities and Exchange Commission will provide investors with their first significant glimpse into the social-networking giant’s business performance, as well as at such other matters as its spending, hiring and executive pay. The Wall Street Journal reported earlier that the company was selecting its bankers and could make the filing as early as Wednesday.

Whether the filing occurs this week or later, here are some of the key points to look for in the documents:

• Revenue growth: The size of Facebook’s current business has been the source of great speculation. Documents leaked back in 2009, when the company was putting together an investment deal with Goldman Sachs, showed revenue of $1.24 billion for the nine-month period ending in September 2010 — up nearly 180% from the same period of the previous year. Has that growth rate been maintained, or has it slowed or accelerated?

• Sales mix: Facebook is thought to generate most of its revenue from online advertising, but the company also gets a cut of transactions executed over the site, such as purchases of games. Social-game maker Zynga, whose titles include CityVille and FarmVille, reported revenue of $828.9 million for the nine-month period ended Sept. 30, 2011, and the company keeps 70% of the sales its games generate over Facebook, which implies a maximum revenue cut of about $350 million to Facebook for this period from Zynga alone. What percentage of Facebook’s revenue base is composed of ads, compared to transactions, and are there other significant revenue sources?

The bottom line: The leaked Goldman documents showed net income of $355 million for the nine-month period ended Sept. 30, 2010, compared with $43.6 million in the previous year. But Facebook has also likely had to spend heavily on network infrastructure, new technology and talent between 2009 and now. Have the company’s costs outpaced its revenue growth rate, and will this moderate over time?

• Float and market cap: The most oft-cited number thrown around of late has Facebook going public at a $100 billion valuation. But like Groupon’s  debut last year, Facebook may choose to make a relatively small portion of its shares available in the offering. This allows the company to preserve a larger proportion of ownership for future offerings and to safeguard demand for the stock in the event that would-be investors grow skittish ahead of the offering.

• Risk factors: This section of an SEC filing is often filled with boilerplate language, but it could in this case provide some insights into how Facebook sees its position in the market vis-a-vis the positions of its competitors — most notably Google GOOG +0.52% , which has launched its own social network and is gunning to become a major force on the same mobile devices that Facebook needs for future growth. Does Facebook see any other companies as significant threats? • Who gets what: Some early investors take advantage of IPOs to cash out some shares. Early Facebook investors include Peter Thiel and the venture-capital firms Accel Partners, Greylock Partners and Meritech Capital. Software giant Microsoft put $240 million into the company back in 2007. Will any executives, such as co-founder and CEO Mark Zuckerberg, Chief Operating Officer Sheryl Sandberg or Chief Financial Officer David Ebersman sell shares in the deal?

• Bankers: The Wall Street Journal report indicated that banking titans Morgan Stanley and Goldman Sachs GS +1.49%  were vying for the coveted lead spot underwriting the deal. Which wins, and what other firms get a piece of the lucrative deal, will be a focus of great interest on Wall Street.

post #2 of 1364
Thread Starter 

$FB: Does Facebook’s Ticker Symbol Tell Us Where It Will IPO?

Why we're starting to see NASDAQ companies with fewer than four letters.

The NASDAQ and New York Stock Exchange would both love for Facebook to IPO its stock there. Last week, it was reported that Facebook had reserved the symbol FB for use “on either exchange,” which gave some business news readers pause. Wait a second, a two-letter symbol? Doesn’t that mean anything anymore?

It used to be that traders could tell at a glance whether a company was listed on the NASDAQ or NYSE: the former used a four character symbol convention and the latter allowed for one to three character symbols. But the vanity tickers became a bargaining chip in the battle for IPOs between the exchanges, which has grown increasingly heated. Most companies want a symbol that fits with their brand, like LNKD, AMZN, GRPN, AAPL, or NYT.

As competition for new IPOs grew fiercer between the two exchanges, NASDAQ told the government it wasn’t fair. Companies should be able to choose an exchange based on real factors like costs, marketing resources, investor relations support and other incentives the exchanges have recently started throwing in.

In 2007, the Securities and Exchange Commission agreed to drop the character restrictions. Cue the jockeying for the coveted single letter symbol on the NASDAQ: over the summer, Zillow grabbed “Z” on the geekier exchange. And get ready for name changes: Electronic Arts switched from “ERTS” to “EA” last month, but is still traded on the NASDAQ.

Facebook still hasn’t announced which exchange it will trade on, and both exchanges are keeping mum. (Companies can reserve a symbol with the exchanges directly, or it can do so via the agnostic Intermarket Symbols Reservation Authority, new as of November 2008.) But if rumors and early reports are true, we could find out as early as tomorrow morning, when some outlets are reporting Facebook will file its first prospectus for a $5 billion IPO.

The NYSE has started catching up to the NASDAQ in number of tech IPOs after a concerted effort. ”To court them, the NYSE created a set of start-up-friendly alternative listing requirements in 2008, addressing a gap where rival Nasdaq had a huge advantage,” writes Institutional Investor. “The NYSE also invested heavily during the past few years in electronic trading, another Nasdaq stronghold. Then it brought in tech bankers to help sell the revamped NYSE and its still-potent brand, pitching CEOs of start-ups and rival companies that were listed elsewhere.”

post #3 of 1364

FB reminds me of the hype surrounding Google and Visa.  Everyone wanted a piece of it.  Private Wealth Management teams couldn't get decent shares for their ultra high net worth clients.  

 

The world will see what FB is like after they report their first earnings.  

post #4 of 1364

Yeah GOOG was overpriced and just kept going higher and higher for 3 years after the IPO. Who would have thought a search engine would grow to become the company it is today. Let's see what becomes of Facebook, wonder what surprises we'll find inside that piñata.
 

Quote:
Originally Posted by tidalxwave View Post

FB reminds me of the hype surrounding Google and Visa.  Everyone wanted a piece of it.  Private Wealth Management teams couldn't get decent shares for their ultra high net worth clients.  

 

The world will see what FB is like after they report their first earnings.  



 

post #5 of 1364

This is one of those things....it's a good company.  They've established a foothold that won't easily be relinquished ala eBay.  But investors are going to go batshit crazy over it just because it's Facebook, and it's going to drive it up to unreasonable levels.  Not that I'm complaining, mind you; I own a significant amount of equity thanks to the secondary market.  But this is going to be one of those companies that just gets put in the box next to CRM and NFLX and LNKD that has no business being priced at the levels it is guaranteed to rocket to.

post #6 of 1364

Mark on the road to Wall Street = Paul on the road to Damascus??!!

           

"Facebook was not originally created to be a company. It was built to accomplish a social mission — to make the world more open and connected."

 

Or was it just a little less altruistic?

Or is it just Hollywood?

 

 

http://www.youtube.com/watch?v=10AeyTCeZJM

 

post #7 of 1364

when FB hits IPO..can we buy call options the second it does? or is there restrictions?

post #8 of 1364

I do not believe options start trading on the same day as an IPO.

 

post #9 of 1364
Quote:
Originally Posted by ze20001984 View Post

when FB hits IPO..can we buy call options the second it does? or is there restrictions?

generally not...can be weeks and up to a month ive seen even longer before options are avail
post #10 of 1364

30 days before you can purchase options.  3 days before you can short one, because it takes that long to be listed as a shareholder of record.

post #11 of 1364
Quote:
Originally Posted by Quintious View Post

30 days before you can purchase options.  3 days before you can short one, because it takes that long to be listed as a shareholder of record.

thumbup.gif
cool
post #12 of 1364

The Hacker Way = Nothing new here!

    

from Mark,s letter

 

The Hacker Way

As part of building a strong company, we work hard at making Facebook the best place for great people to have a big impact on the world and learn from other great people. We have cultivated a unique culture and management approach that we call the Hacker Way.

The word “hacker” has an unfairly negative connotation from being portrayed in the media as people who break into computers. In reality, hacking just means building something quickly or testing the boundaries of what can be done. Like most things, it can be used for good or bad, but the vast majority of hackers I’ve met tend to be idealistic people who want to have a positive impact on the world.

The Hacker Way is an approach to building that involves continuous improvement and iteration. Hackers believe that something can always be better, and that nothing is ever complete. They just have to go fix it — often in the face of people who say it’s impossible or are content with the status quo.

Hackers try to build the best services over the long term by quickly releasing and learning from smaller iterations rather than trying to get everything right all at once. To support this, we have built a testing framework that at any given time can try out thousands of versions of Facebook. We have the words “Done is better than perfect” painted on our walls to remind ourselves to always keep shipping.

Hacking is also an inherently hands-on and active discipline. Instead of debating for days whether a new idea is possible or what the best way to build something is, hackers would rather just prototype something and see what works. There’s a hacker mantra that you’ll hear a lot around Facebook offices: “Code wins arguments.”

Hacker culture is also extremely open and meritocratic. Hackers believe that the best idea and implementation should always win — not the person who is best at lobbying for an idea or the person who manages the most people.

To encourage this approach, every few months we have a hackathon, where everyone builds prototypes for new ideas they have. At the end, the whole team gets together and looks at everything that has been built. Many of our most successful products came out of hackathons, including Timeline, chat, video, our mobile development framework and some of our most important infrastructure like the HipHop compiler.

To make sure all our engineers share this approach, we require all new engineers — even managers whose primary job will not be to write code — to go through a program called Bootcamp where they learn our codebase, our tools and our approach. There are a lot of folks in the industry who manage engineers and don’t want to code themselves, but the type of hands-on people we’re looking for are willing and able to go through Bootcamp.

 

----------------------------------------------------------------------------

 

The Scientific Method

 

from Answers.com

The principles and empirical processes of discovery and demonstration considered characteristic of or necessary for scientific investigation, generally involving the observation of phenomena, the formulation of a hypothesis concerning the phenomena, experimentation to demonstrate the truth or falseness of the hypothesis, and a conclusion that validates or modifies the hypothesis.

-----------------  In use since the 17TH century!!

 

Peer Review

 

from Wikipedia

 

Peer review is a process of self-regulation by a profession or a process of evaluation involving qualified individuals within the relevant field. Peer review methods are employed to maintain standards, improve performance and provide credibility. In academia peer review is often used to determine an academics paper,'s and suitability for publication.

---------------- old school

 

Brain Storming

 

Brainstorming is a group creativity technique by which a group tries to find a solution for a specific problem by gathering a list of ideas spontaneously contributed by its members. The term was popularized by Alex Faickney Osborn  in the 1953 book Applied Imagination. In the book, Osborn not only proposed the brainstorming method but also established effective rules for hosting brainstorming sessions.

 

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post #13 of 1364

What do you guys think FB's performance will be in the early months? I've been eying this since they filed and trying to gauge the best way to deploy some options or a straddle to make a buck on this (once options are available). I'm sure their stock will make some big moves early on but I'm not sure if I would expect it to surge on popularity or tank from being overpriced.

post #14 of 1364
Quote:
Originally Posted by jsteinm1 View Post

What do you guys think FB's performance will be in the early months? I've been eying this since they filed and trying to gauge the best way to deploy some options or a straddle to make a buck on this (once options are available). I'm sure their stock will make some big moves early on but I'm not sure if I would expect it to surge on popularity or tank from being overpriced.



It'll be up and above IPO price is my opinion. Facebook is a great company and PE seems to be ignored completely for a lot of these websites (see AMZN, LNKD[holy cow, pe of 769x ????]). 

 

Of course, there will be a lot of people that will try to flip it for a quick buck so expect volatility.

post #15 of 1364

30% of facebook employees will become millionaires overnight.

post #16 of 1364

idk.. longing ZNGA, GRPN, LNKD, YELP, anything that has remotely anything to do w/ facebook. 

post #17 of 1364

http://www.cnbc.com/id/46884087

 

Coming soon. Pre-IPO trades are going for $38-40. I plan to hop in sometime on day 1 and ride the wave.

post #18 of 1364

So it looks like May will be the month.

post #19 of 1364
How soon you think options wil start trading after the ipo? Yelp was soon after, I think it was few days
post #20 of 1364

f it... i'm gonna buy this IPO just b/c there's so much coverage to stay away from it...

 

& they always say the IPO is priced @ $19 or something but i only see the trading range starting from $30 or some price way higher than the IPO price.. how do I get it for the IPO price? is it even possible?

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