Facebook's IPO

[Ed Viper]

Okay, so I'm sure we've all heard the news that Facebook has just become a public company, meaning you can purchase shares in this company and, in a sense, own a part of Facebook.

The problem people seem to have, however, is that they don't understand how Facebook makes money, since its services are completely free.

Is anyone here having this issue? I'd be glad to explain it! (I apologize in advance if you already know this or don't care.)

Okay, so, first thing's first, companies don't advertise on the internet, advertising companies do. Companies that supply a product (Coors, Coke, whatever) pay advertising companies to host ads on websites (you'll see Google does this a lot too, a la "ads by Google"). These advertising companies get bundles of money from supply companies (it's seriously ridiculous how lucrative it is), and they pay other companies like Facebook, for instance, to show their ads on their website(s).

A friend of mine actually works for one of these advertising companies, and he made $1000 in his first month working there (while working for about 10-14 hours a week). It is a very volatile market, however. There's not a whole lot of job stability (he's been laid off after his first month working there).

Now then, these advertising companies pay the company that owns whatever site their advertising on sums of money directly proportional to how many times their ad is viewed. Studies show that people who view ads actually DO purchase more product, so now these production companies have more money to give to advertising companies, who in turn have more money to give to Facebook. In the end, all three companies involved make a profit.

People who make games also pay Facebook to host their flash games on their website (at a rather low price, might I add). Every time you buy something on one of these games with hard money, a cut of it goes to the Facebook corporation.

Add advertising and games together, and you get a multi-billion dollar company.

I apologize again if anyone here already knows this or doesn't really care (you probably don't if you don't plan to buy Facebook stock).

===THE MORE YOU KNOW===☆

[natsukashi]

I'm considering buying stock. Main issue is that I'm broke and I have nowhere enough money to buy stock. And as the stock market is very volatile it would be hard for me to find the time to sell as well. They should offer bonds

[LFP]

They also sell information mainly to commercial makers to see what for instance young people listen to (music that is), and play it in their commercial, what celebrities you follow and so on, which is also why as of lately spotify has been linked to Facebook and more applications like instagram have been added.

[Ed Viper]

They also sell information mainly to commercial makers to see what for instance young people listen to (music that is), and play it in their commercial, what celebrities you follow and so on, which is also why as of lately spotify has been linked to Facebook and more applications like instagram have been added.

Ah, that's also true. Forgot about that.

[LFP]

I don't recommend buying stock in it. Now that it's public, I can almost guarantee you that it's going to get whored out to such an excess people abandon it.
when that happens. your stock with be worth exactly: Dick.


Kinda like myspace.

Prostitution is actually quite expensive.

[Navron]

Just over the past few years, I've been seeing the same trends with Facebook that happened with Myspace.

First it was great. Then they added some features people didn't like. Then they forced updates and features people REALLY didn't like (ex. Timeline <---fuck that thing). Then, just like how Myspace started losing people to Facebook, we've already seen people giving up Facebook for Google+.

It's quite funny how this social networking trend comes around full circle, but yeah, in regards to stock, I wouldn't be very surprised if Facebook gets dumped for Google+ over the next couple years, just like how Myspace got dumped for Facebook.

In other words, I wouldn't put my money into it.

[inkBot]

I wouldn't buy a burning ship. Much less a tiny part of it.

[Legion]

Then they forced updates and features people REALLY didn't like (ex. Timeline <---fuck that thing).

I actually like timeline >_>

I wouldn't be very surprised if Facebook gets dumped for Google+ over the next couple years, just like how Myspace got dumped for Facebook.

Lolno.

In other words, I wouldn't put my money into it.

I wouldn't buy a burning ship. Much less a tiny part of it.

... yeah, pretty much. Buying high is always a terrible idea, I assume those shares are gigantic right about now.

[natsukashi]

I have yet to see something that points to a decline in facebook activity and revenue. Where are your facts dudettes?

[Freewave]

hmm i just read an article about how facebook and google would be really going to blows for marketshare in the future and how google likely was going to be the older and more prone to losing that, but i think that's silly. Google still owns youtube and blogspot and is the biggest search engine. I just don't think Facebook is that amazing frankly as i see a lot of girls use it like their twitter account so I rarely enjoy actually looking at what people are posting. So it's hard to see it as the future when it's already old hat.

Any idea who owns tumblr? Has any big company bought or is behind that?

[natsukashi]

corporate tendencies.

Yeah I don't think that you're a wall street broker so is it okay if I dismiss your opinions? =w=

[natsukashi]

Those are just assumptions based on one social media networking site and the lifespan of that one.
I have heard so much about facebook-killers buting nothing compares and facebook is still in a growing stage, not in a declining stage.
Facebook continues to grow with the expansion of facebook-login services as well. It is very convenient for laymen and we are a minority.

Social media sites like tumblr and twitter are not subject to decline for merely a change. Neither is facebook really. Usually the rearrange stuff so that it makes WAY FUCKING MORE SENSE than it did before and then people complain because they act like neckbeards who complain that Gimli had the wrong shade of beard in the movie compared to the book. And when the next change comes, it's all fine and dandy and forgotten and want back to the place they all hated before. People are not giving up facebook because it's trivial changes. Maybe if facebook started to charge for its use (which it has explicably stated that it never will. But being open on the stock market means that someone else can gain 51% of the stock and assign a new CEO. Even then they'll only force people into a charging situation if they're total retards.) Only such a major move would warrant a death of facebook. =w=

[Ed Viper]

Then they forced updates and features people REALLY didn't like (ex. Timeline <---fuck that thing).

I actually like timeline >_>

Me too. *squee*

In other words, I wouldn't put my money into it.

I wouldn't buy a burning ship. Much less a tiny part of it.

... yeah, pretty much. Buying high is always a terrible idea, I assume those shares are gigantic right about now.

They're actually not big. They kind of hovered at $38.00 USD the entire first day they were open (and are still there today).

Keep in mind, however, that Sony's shares are selling for $13.77 USD per share. So yeah, I don't think Facebook's got any major problems to worry about.

[Facade]

I wouldn't buy a burning ship. Much less a tiny part of it.

so much truth xD

[natsukashi]

I still have no interest in buying facebook stock. Too risky and almost guaranteed to fail in the long run.

Ya gotta know when to sell!
Of course everything fails, it's inevitable. Stock broking is about timing!

[Facade]

I know, but facebook doesn't look like it's going to anywhere from down from here on out.

dude its always been going down

[Facade]

>:D sooooooo?

we should start a new one that doesn't allow all the stupid "like this if" crap xD

[Facade]

Agreed.
That crap is annoying..

ya it does nothing but fill up the news feed xP

[Facade]

that's even more annoying xD

[Facade]

i just dont get why social media forces these crappy changes on all their customers...

this^

[Facade]

endless loop just like the spam picture in facebook D:

[Facade]

yea xD

[natsukashi]

Hey, I've got an amazing idea. Why not just REMOVE THE RETARDS INSTEAD OF COMPLAINING ON FACEBOOK FOR SOMETHING THAT ISN'T THEIR FAULT.

[LunchBagMusic]

<vent>

Facebook isn't a product, it's a service. You don't complain about your bus company because there are smokers on your bus, you complain about the people who are smoking on the bus.

Facebook is the most successful attempt at moving society from the real-world onto the internet. You're gonna get the good times with the bad.

Also, timeline.

I'm not sure if you're aware, but facebook employ people to design their layout. These are people who have studied everything from colour combination and type faces (Notice how Facebook doesn't sport comic sans/rainbow gradient a la your grade 3 powerpoint) to where you are most likely to look on a webpage. They know their shit.

Timeline is good in my opinion.

I actually get really excited when there is a GUI update because I enjoy seeing designers experimenting and succeeding with unconventional techniques.

So yeah. Quit bitchin' about the change because you're not used to it, this is someone trying to make your life better. The least you could do is be open and try and see the good in it.
</vent>

Also Facebook isn't a sunk ship. It's going to become a staple like energy companies and telecommunications.

People are just saying its on fire because they're below deck in the heated cabin, and can't see the bigger picture.

[bartekko]

Also Facebook isn't a sunk ship. It's going to become a staple like energy companies and telecommunications.

telecommunications don't force me to buy a new phone because the old one is an old model, and even if i decide to do so, I can always use my old one