Erstellt am: 18. 5. 2012 - 13:55 Uhr
Will the markets "like" Facebook?
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So, the big day is here and all around the stock markets the "F" word is on everyone's lips - the "F" being, of course, "Facebook".
EPA
Trading will start with the shares valued at Euro 30 each, but before you break open your piggy-bank to buy into the coolest flotation ever, bear a couple of things in mind. Firstly, you need to spend a few thousand Euros to make the whole transaction worthwhile becuase the banks and brokers will be taking their fees out of your funds. Secondly, assuming you have the few thousands to spare to make the transaction worthwhile, if you think buying into The Social Network will give you some sort of say in those horrendous privacy settings or how the site works, you'll be sorely disappointed. The only people who have enough money to buy a share of the company with any sort of influence are institutions. So, let's say you were the CEO of an institution that could buy into Facebook, would it be a good investment? The Head of Group Equity Capital Markets at Erste Group Bank AG, Martin Hinteregger, says not necessarily. He told Riem Higazi the value of the Facebook is based on its advertising revenue, not its users. As more and more people access it over mobile devices and bypass the advertising, the company becomes less and less attractive as an advertising platform.
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