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Bill Gurley defends Facebook's (FB -9.3%) weak post-IPO showing by pointing out Amazon (AMZN)...

Bill Gurley defends Facebook's (FB -9.3%) weak post-IPO showing by pointing out Amazon (AMZN) fell below its IPO price shortly after its 5/17/97 offering, and didn't move above until 7/6. Of course, Amazon was worth less than $1B at the time, whereas Facebook is worth $95B today. TechCrunch founder-turned-VC Mike Arrington says he just bought some Facebook shares. (earlier)
Comments (5)
  • Mad_Max_A_Million
    , contributor
    Comments (1175) | Send Message
     
    Facebook is just one in a series of Vanity sites used by mostly women who, while bragging, are trying to convince other women how well off they are.
    Just what I've heard. Never been there. Could be wrong.

     

    Positions: No Vanity sites...
    21 May 2012, 02:59 PM Reply Like
  • Hendershott
    , contributor
    Comments (1510) | Send Message
     
    900 million users are all women bragging about how well off they are? I think you should become a little more familiar with Facebook. If I recall correctly and maybe I don't, Amazon wasn't profitable when it went public. Facebook was incorporated in 04, had an EBITDA of $2.13 billion, GAAP of $649M and is projected to be making well over $1 billion this year. Pretty impressive for an 8 year old company. I don't own Facebook and I'm not telling you it's a good investment at this price, but I am telling you not to ignore Facebook or social media in general.
    21 May 2012, 05:59 PM Reply Like
  • warrenrial
    , contributor
    Comments (558) | Send Message
     
    I bought some candy bars today.
    21 May 2012, 03:10 PM Reply Like
  • Hitesh Patel
    , contributor
    Comments (314) | Send Message
     
    Amazon had a business model from the beginning. Sell goods on line cheaper without a store front and all the expenses that went with it. It takes a cash burn to set up operations of that scale. The key thing is AMZN HAD A BUSINESS PLAN and they weren't valued at 104 billion frim day one. FB is still trying to figure out how they are going to capitalize on thier users as ad revenue is declining. To me its apples and oranges comparing the two
    21 May 2012, 07:37 PM Reply Like
  • Hendershott
    , contributor
    Comments (1510) | Send Message
     
    At the time, few thought AMZN's business model of selling books on the internet would work. FB does have a model, heck they had EBITDA of over two billion bucks and GAAP earnings of over 600 million in the last twelve months. It's really Google's model. Advertising, extremely targeted advertising, word of mouth advertising. What the company is trying to figure out isn't how to capitalize on their users, it's trying to figure out how to maximize their mobile usage.
    21 May 2012, 08:09 PM Reply Like
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