No, it wasn't. You'd fail any microeconomics 101 class with your reasoning.
Learn economics. Your ignorance has become very tiresome.
OFFICIAL Facebook IPO Thread
- Thread starter guerilla
- Start date
Learn economics. Your ignorance has become very tiresome.
I did very well in micro and macro economics.
By the way, Verlander has a no-hitter going in the 9th...
This is obviously a joke. You are bar none the worst poster on economics matters out of posters with 2,000+ posts on this forum.
To boot, you're a Ron Paul fan who doesn't understand his economics.
You might have a case that I have autism (I don't) but I don't think you even know what Aspergers is if you think I have it. You might as well post that I have menopause, or Alzheimers, that would make the same amount of sense.
Just call me a poopy head and be done with it. Another great argument!!!
I did very well in micro and macro economics.
By the way, Verlander has a no-hitter going in the 9th...
Verlander is a bum.
Ok, then one person buys 1 share from me for $800. The value is now $800/share, right?
My point is, the value is whatever the market determines it is, even if it doesn't make sense.
Price controls are not part of a free market. I'm not going to brag about my degrees, or the grades I got because they aren't what makes me right. When a price control is instituted in a market, you can not determine the actual value. You should know this.
Dude, this is you. Anyone that's been here long enough knows it.
Only if it is a free market without price controls. Otherwise the price will not match the value.
I'm not arguing for or against UG, but you don't have to understand Ron Pauls economics to support him or his economic plan. You can know enough about his other positions to have faith that what he's saying about economics is correct.
That's correct, but I actually do understand his economics - Austrian School all day errday. Guerilla is just venting, let him do his thing.
Let's look at history.
Could we not apply the same argument here to Amazon when it IPOed?
Amazon went public and was valued at $438 million.
At the time, Amazon had $16 million in revenue, and was running at a net LOSS of $3 million.
Amazon.com IPO skyrockets - CNET News
It traded at $18/share.
Moving forward to today:
Amazon is valued at $96.34 Billion
Its share price is $213.85
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If we went back in time, some people here would be arguing how Amazon was WAYY overvalued, and not making any profits. That obviously wouldn't have turned out to be the case.
We can't be certain about what the future holds for Facebook, but Amazon's example gives merit to Facebook's current valuation.
Could we not apply the same argument here to Amazon when it IPOed?
Amazon went public and was valued at $438 million.
At the time, Amazon had $16 million in revenue, and was running at a net LOSS of $3 million.
Amazon.com IPO skyrockets - CNET News
It traded at $18/share.
Moving forward to today:
Amazon is valued at $96.34 Billion
Its share price is $213.85
-------
If we went back in time, some people here would be arguing how Amazon was WAYY overvalued, and not making any profits. That obviously wouldn't have turned out to be the case.
We can't be certain about what the future holds for Facebook, but Amazon's example gives merit to Facebook's current valuation.
Different monetization plans for those two sites there...I personally think that the lifespan of a user on any given social site is much shorter than people would like to believe. So while a FB user may be worth $1 now, and FB will try to turn that dollar into ten, they may have a much smaller window of opportunity in which to accomplish that than they think.
How are the underwriters buying the stock on the market for the current price a "price control"?
Intrinsic Value - 1. The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market value. Value investors use a variety of analytical techniques in order to estimate the intrinsic value of securities in hopes of finding investments where the true value of the investment exceeds its current market value.
Investopedia explains 'Intrinsic Value'
1. For example, value investors that follow fundamental analysis look at both qualitative (business model, governance, target market factors etc.) and quantitative (ratios, financial statement analysis, etc.) aspects of a business to see if the business is currently out of favor with the market and is really worth much more than its current valuation.
Market Value - 1. The current quoted price at which investors buy or sell a share of common stock or a bond at a given time. Also known as "market price".
Investopedia explains 'Market Value'
1. In the context of securities, market value is often different from book value because the market takes into account future growth potential. Most investors who use fundamental analysis to pick stocks look at a company's market value and then determine whether or not the market value is adequate or if it's undervalued in comparison to it's book value, net assets or some other measure.
wow difficult argument about value.
/thread (in regards to valuation)
Investopedia explains 'Intrinsic Value'
1. For example, value investors that follow fundamental analysis look at both qualitative (business model, governance, target market factors etc.) and quantitative (ratios, financial statement analysis, etc.) aspects of a business to see if the business is currently out of favor with the market and is really worth much more than its current valuation.
Market Value - 1. The current quoted price at which investors buy or sell a share of common stock or a bond at a given time. Also known as "market price".
Investopedia explains 'Market Value'
1. In the context of securities, market value is often different from book value because the market takes into account future growth potential. Most investors who use fundamental analysis to pick stocks look at a company's market value and then determine whether or not the market value is adequate or if it's undervalued in comparison to it's book value, net assets or some other measure.
wow difficult argument about value.
/thread (in regards to valuation)