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"Fury Over Facebook IPO Grows, Lawsuits Mount"

Discussion in 'BlackHat Lounge' started by silentthunder, May 23, 2012.

  1. silentthunder

    silentthunder Jr. VIP Jr. VIP Premium Member

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    Fan backlash or media attack? Billionaires have probs too. :(


    http://finance.yahoo.com/blogs/breakout/fury-over-facebook-ipo-grows-lawsuits-mount-150039330.html

    So now it's day four in the life of "public Facebook" (FB), and setting aside for a moment some gyrations in the stock price, it's safe to say things are still going to pretty much suck for the social media titan—at least for the foreseeable future. Only a week ago Mark Zuckerberg and the company he founded seemed to be draped in teflon and en route to world domination, whereas today kevlar might be a more suitable garment as an angry mob grows on their doorstep.
    "They've done a lot of reputational damage to their brand, and that matters," says my co-host Jeff Macke in the attached video. He argues that the Silicon Valley company, renowned for its "thumbs-up and chums and we're all friends," has alienated its fans in a big way.
    At the same time, with lawsuits literally mounting by the hour, it seems anyone within an arms reach of this deal is going to have some serious explaining to do. While shareholder suits are commonplace and often frivolous, the problem with this grievance is that it's grounded in populism, it's easy to understand, it will get wide mainstream coverage, and it's of interest to about one billion people.
    As I write, shareholder suits have already been filed in New York and California. The State of Massachusetts has subpoenaed Morgan Stanley (MS), following reports that it allegedly only told a few of its best clients that its analyst was cutting his revenue outlook for the company. The entire underwriting syndicate --(GS), (JPM), (BAC), (BCS)-- is being sued, as is Facebook's newlywed CEO and several board members. In addition, the Nasdaq (NDAQ) has also been sued, and the SEC and FINRA are launching investigations. Congressional hearings and probes can't be far off.
    This is not how it was supposed to go. The long-awaited debut was supposed to be the fairytale ending (or beginning) to the great growth story of the modern era. Instead, it has become just one big mess that's not only an embarrassment to all parties involved, but a huge distraction to business when it is supposed to be focusing on ways to grow its revenue.
    What a mess.
    Do you think Facebook (FB) will end this year above or below its IPO price of $38 a share? Please answer our poll question below and visit us on Facebook!
     
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  2. GiftGuru

    GiftGuru Supreme Member

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    I hope the judge says this after they bang their gavel:

    "Oh, you were stupid enough to invest in facebook? Judgement for the plaintiff!"
     
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  3. harry911

    harry911 Regular Member

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    It's nothing short of a scam. Facebook is valued at 110 times its last year's profit! Are investors really that dumb?!
     
  4. silentthunder

    silentthunder Jr. VIP Jr. VIP Premium Member

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    They had the hoopla machine cranked to the Max!
     
  5. covertkemist2.0

    covertkemist2.0 Registered Member

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    this is ridiculous all these sheep loaded up on FB stock because the thought it would make them instantly rich. (sounds a lot like people buying WSO's expecting money to rain from the sky. Do your due diligence, any thing that sounds too good to be true (110x earnings! Imagine the rate facebook would have to keep growing at to support that valuation... Its absurd) IS.
     
  6. techcrunked

    techcrunked Regular Member

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    bet google plus guys are enjoying this
     
  7. metalan1

    metalan1 BANNED BANNED

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    They overvalued it on purpose, made the banks money, then cashed out. This is the most blatant scam in recent history.
     
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  8. kvmcable

    kvmcable Supreme Member

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    Yes, nothing like the Krispy Kreme IPO that I still kick myself for not jumping on. I think those stocks tripled in days.
     
  9. jonnyquest

    jonnyquest Regular Member

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    Ol Marky Mark and the Funky bunch cashed out and we gone now ha ha
     
  10. covertkemist2.0

    covertkemist2.0 Registered Member

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    Maybe I'm in the minority here but has personal responsibility gone out the window. Regardless of analyst statements (and possible revisions) and what MS offered as the valuation investors should run their own numbers and examine valuations themselves. Just because some Ibank says its valued at x value doesn't mean its true (the higher share price they get the more fees they earn, couple that with Zuckerberg's hubris and of course it would end up way overvalued) you need to examine what needs to happen for that valuation to be justified. Short of facebook being invented again I don't see how any intelligent person can accept the 110x earnings valuation and the growth that would be necessary for that valuation.
     
  11. teamrecon

    teamrecon Registered Member

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    Was Bernie Madoff involved in the IPO ??? :rolleyes:
     
  12. blackwp

    blackwp Junior Member

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    One thing I learned back 12 years ago, stay far away from stocks, you will get shaved and even don't know it.
    But hey we have a few more billionairs on earth, and a few million poor sheeps who made them billionaire.

    My gues is before end of this year Facebook will be around $25 if they are lucky!
     
  13. Roparadise

    Roparadise BANNED BANNED

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    Only amateurs buy stocks like FB.
     
  14. T3chnician

    T3chnician Regular Member

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    I can tell we dont have any stock brokers in here lol... No matter what FB IPO did at its launch its still a smart investment. Do you really think FB is gonna just dissapear? Personally im waiting to see if it go's lower but if so im gonna snatch some shares up and watch it. This is the stock market companies go up and down all day every day the only difference is because its FB everyone is making a big deal about it...
     
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  15. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    The only requirement for being an investor is having money. I 'm sure you know of a lot of stupid rich people ;)

    What to see a really classy scam? :)



    Yes, you are right of course. But think of it this way. Everyone wants sheep to gamble their money on the stock market. That 's why they pretend to ignore the personal responsibility factor and talk about scams etc. - they need to keep the sheep comfortable in the idea that some big daddy is protecting them, so that they will keep their money in. ;)
     
    Last edited by a moderator: May 18, 2016
  16. andee

    andee Regular Member

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    and you're clearly not one either

    are you trying to say that if I brought shares on its opening day that it would of been a smart investment ?!
     
  17. Roparadise

    Roparadise BANNED BANNED

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    If you want a good company to invest in, look at the Southern company,and companies with similar results over the past several decades.
     
  18. ryannull

    ryannull Senior Member

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    Facebook is merely a fad, like Myspace and will suffer the same fate. Anyone that invested in Facebook stock doesn't understand social networking.

    Facebook's whole advertising policy is a joke. You pay Facebook money to advertise your fan page? Come on, that's a joke.
     
  19. AdisLCS

    AdisLCS Power Member

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    IMHO - The IPO of FB looked like any typical penny stock hyped up Pump and Dump.

    The marriage between a a trendy tech social network (possible fad?) and hardcore profit driven greedy bankers that have hard time understanding "refresh" on the internet browser is destined to fail unless one side significantly gives in.

    So either the user experience will greatly suffer as FB is forced into making serious changes and money for its investors or the investors will cave in. Neither of which is great solution.

    As far as the stock goes, I would not invest in it other than to say "I own part of FB". It has no dividend, trading at 100+ times earnings, no tangible value, risky and unstable industry.

    It is trendy and a nice chatty topic at fancy cocktail parties. Just like ppl bought enron shares just to be part of history.
     
    Last edited: May 24, 2012
  20. LakeForest

    LakeForest Supreme Member

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    ...If you own their stock...Do you own your data?

    Forget dividends, give users the ability to have full control of their account info and the ability to permanently delete everything instead and watch the stock price soar.

    If only :\