Paul Graham's Letter to YC Companies

Re:Paul Graham's Letter to YC Companies by limeade on Tuesday June 05, 2012 @01:08AM (#4067413)

Can someone explain the perception that Facebook's IPO was a disaster? Doesn't the fact that the stock has not risen mean that the offering had the correct price?

[ Parent | on HN ]

Re:Paul Graham's Letter to YC Companies by rdl on Tuesday June 05, 2012 @01:40AM (#4067492)

Opening at 38 and staying in the high 30s/low 40s would be reasonable. Maximum value for FB, Inc., stable price.

Dropping to 26, not so much.

[ Parent | on HN ]

Re:Paul Graham's Letter to YC Companies by hncommenter13 on Tuesday June 05, 2012 @01:56AM (#4067544)

Remember that 26 includes the value of $9B of additional cash on the balance sheet from the IPO. So the valuation of Facebook as a business is actually lower still, once you back out the cash.

[ Parent | on HN ]

Re:Paul Graham's Letter to YC Companies by sanxiyn on Tuesday June 05, 2012 @03:32AM (#4067760)

I'd agree with you if the price has not risen. In reality, the price has fallen, more than 20%. It may be good for Facebook, but the price was not correct.

[ Parent | on HN ]