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FortWayne
2011 Jun 24, 3:17pm
it will once they replace all the US techies with their Indian/Chinese counterparts.
Both LinkedIn and Pandora are marginal businesses that should never have IPO'ed.
Investors in these stocks are like the lunkheads at parties who drink the PBR, or the homeless people who eat out of McDonald's dumpsters. Desperate and self-defeating.
Next up, the worst of the three: Groupon. Groupon investors are like homeless people scraping H and french fries out of McDonald's dumpsters and freebasing them off of each others' forearms.
This is no bubble, this is just stupidity and I hope it washes out of the system quickly and doesn't cause too much collateral damage.
Pandora admits in their SEC filings that their business model could have to change significantly. They are currently in rate court with the performing rights organizations, and if they get an unfavorable ruling, their revenues could take a hit. I don't understand why people would invest in them with such a significant risk factor.
I agree on Groupon. Their financials make no sense, and the more you look at the details, the more it looks like a Ponzi scheme.
Apple makes stuff and sells it. The others I have no idea why people buy their stock.
PRIME
2011 Jul 1, 1:18am
Investors in these stocks are like the lunkheads at parties who drink the PBR, or the homeless people who eat out of McDonald’s dumpsters. Desperate and self-defeating.
Next up, the worst of the three: Groupon. Groupon investors are like homeless people scraping H and french fries out of McDonald’s dumpsters and freebasing them off of each others’ forearms.
this seems like a wild overstatement
PRIME
2011 Jul 1, 1:22am
Apple makes stuff and sells it. The others I have no idea why people buy their stock.
they provide a service and generate advertising revenue. google provides a service and made $8.5B last year. it seems like facebook will be a highly profitable enterprise as well. i am not saying these are worthwhile investments, but i could see how they could be profitable.
this seems like a wild overstatement
No, it's literal.
I've seen it happen in the parking lot of the McDonalds on Haight at the park.
You can tell them by the Groupon fleeces when the cops roll them over to check respiration.
Zynga, Groupon, done. That's my guess.
Zynga actually makes some money off of poor slobs. I don't think they're a good investment, but they are way more credible than Groupon. That says more about Groupon than it does about Zynga tho.
Tidy little article on the current state of recent tech IPO's:
Is Silicon Valley's New Tech Bubble Already Over?
http://www.goldenstateliberty.com/2011/06/is-silicon-valleys-new-tech-bubble.html
Ouch. Just a week after its IPO, when its stock reached a high of $25 a share, the bloom is rapidly coming off the rose of San Francisco-based Pandora Radio; today, it closed at $13.50. Given that the euphoria over LinkedIn has also dissipated (after reaching a high of $94.25 on its opening day, LNKD closed today at $67.81), the San Jose Mercury News is worried that the market for tech IPOs may be cooling off before the party even gets started.
And here's the link the the Mercury News article:
O'Brien: Pandora's stock plunge could mean trouble for Silicon Valley IPOs
http://www.mercurynews.com/business/ci_18324554
There are all sorts of red flags contained in Pandora's filings. For instance, the rates that Pandora pays music companies go up as more people listen to more music. In other words, the more people use the service, the more unprofitable it becomes. Pandora hopes to overcome that by massively increasing the amount of ads it sells, but it's anyone's guess as to whether the company can pull that off.
So what do you think? Short the next tech IPO? (note: justme already said watch your backside on this move...)
#bubbles