How to short the facebook ipo

I have been thinking a lot this morning, especially of how I believe Facebook ("FB") is overvalued and wish I could short it. Like many have mentioned there are not many ways to short FB right now.

I really don't want to make money out of the short but much rather just prove a point... we are in a bubble and were tired of all the hype.

There are many unsophisticated retail investors (i.e. 401K, pensioners, grandparents and parents) lining up to buy the FB stock, these investors are likely to get burned in the long run. I personally can't stand it anymore.

It disappoints me that although I haven't used my FB account in over a year, they still count my username in their number of users in the prospectus and hold a lot of my personal information and pictures.

So I have figured a way to truly short the FB stock, I will cancel my Facebook profile today as an act of solidarity to all those that will stand to loose money through the exuberance involved in today's modern tulip bubble...

I have posted this in hopes that those who feel the same way as I do will take the same action and once and for all short this time consuming obsession by closing down their profiles.

That is all,

SIL

Comments (16)

May 18, 2012

You should look up what the word short means.

If I had asked people what they wanted, they would have said faster horses - Henry Ford

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May 18, 2012
happypantsmcgee:

You should look up what the word short means.

I know what it means mr.happypants, ...just closed my profile.. feels good! Just SB you cause I'm feeling better now even though you MS me... such is life

May 18, 2012
suchislife:
happypantsmcgee:

You should look up what the word short means.

I know what it means mr.happypants, ...just closed my profile.. feels good! Just SB you cause I'm feeling better now even though you MS me... such is life

Because I'm not one to let an innocent stand trial for my own actions, I'll tell you that hpm was NOT the one who shit on you in this particular post.

Now that this particular deed has come to light, I suppose I owe you an explanation:
Though I'm sure the rest of your content on the site is of the most pristine quality, I shit on you because you failed to grasp that though you may have closed your Facebook, you haven't stopped sharing irrelevant shit to people who don't care to hear it. Thus your action can be interpreted in either one of two ways: as naively oblivious or as hypocritical, neither of which are particularly redeeming.

Also, the comment about the short was certainly relevant.

"Millionaires don't use astrology, billionaires do"

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May 18, 2012

wut wut

May 18, 2012
Nouveau Richie:
suchislife:
happypantsmcgee:

You should look up what the word short means.

I know what it means mr.happypants, ...just closed my profile.. feels good! Just SB you cause I'm feeling better now even though you MS me... such is life

Because I'm not one to let an innocent stand trial for my own actions, I'll tell you that hpm was NOT the one who shit on you in this particular post.

Now that this particular deed has come to light, I suppose I owe you an explanation:
Though I'm sure the rest of your content on the site is of the most pristine quality, I shit on you because you failed to grasp that though you may have closed your Facebook, you haven't stopped sharing irrelevant shit to people who don't care to hear it. Thus your action can be interpreted in either one of two ways: as naively oblivious or as hypocritical, neither of which are particularly redeeming.

Also, the comment about the short was certainly relevant.

I never mentioned sharing stuff (that's a positive of Facebook), just a valuation I don't have anything against the internet or people communicating with one another, did you bother to read what I wrote?

Regarding your so called deed please reason before judging, and here is a silver banana for you too...

May 18, 2012

You're an idiot OP.

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May 18, 2012
manbearpig:

You're an idiot OP.

Well Facebook's value diver is its user base; hence less users equals less value. That was just my point

May 18, 2012

Take this approach. 104 billion dollar valuation...900 million users. They apparently feel that the average FB user generates $115 dollars of value for them, which is pretty inaccurate IMO. My FB profile is reportedly worth $114 according to the "Value your FB profile" application, and I am in my young-mid 20s and have used Facebook relatively regularly (as far as the ability of companies to generate revenue from me by FB advertisements) for 5 years. I believe I am more valuable to Facebook than the average user by at least 20% if not more. I would expect this stock to roll down towards $30 by the end of the month.

May 18, 2012

More importantly is it more accurate to say "fewer" users, rather than "less" users... ?

Thoughts?

May 18, 2012

FB is overvalued. It's laughable how people are tripping over themselves trying to buy it just b/c it's FB. I'd be willing to bet 1 out of 5 profiles is either inactive for 3+ months, troll acct, or spam. We're talking $20 billion in EV - an illusion. It has a life cycle just like any other product and most "cool" people have moved on to new things b/c FB is the definition of a sellout, not to mention the unnecessary changes they constantly ram down your throat. I got rid of my acct probably 6 months ago and all the ppl that I would consider "cool" are doing the same. The only people left in about 2 years will be bored women and idiot kids and of course your internet creepers, making it the next myspace.

Sounds like a $100 billion business to me

May 18, 2012

If you want to short, go make a bet with someone who wants to go long. Set your timeframe, notional amount, and exchange cash on a daily basis based on that day's returns. You got some counterparty risk, but it should be effectively the same as a short.

May 18, 2012

OP you a troll? Even if you "close" your account by deactivating it, they'll still have all your info. You're one millionth of a drop in a bucket.

No one except hedge funds can even find a way to short facebook anyway

May 18, 2012
jgx101:

No one except hedge funds can even find a way to short facebook anyway

Ever hear of a put? They'll be available on FB shortly.

May 18, 2012
Boothorbust:
jgx101:

No one except hedge funds can even find a way to short facebook anyway

Ever hear of a put? They'll be available on FB shortly.

It is pretty obvious I didn't mean "there will never be a way to short facebook." Sorry if you didn't interpret it that way.

May 18, 2012
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