Plan B Forum

it has a 500 million loss this year, and sees no path to profit.

and that s what the company says....

so..., they are going public soon, an IPO is coming....

but the shareholders will have no voting rights with their shares....

does this makes sense?

why would anyone buy a share?

someone please enlighten me.

unless it is a vehicle for some agenda that is more important than money, I don t get it.

Most tech type stocks have no voting rights. The point is to set a value, so that when a larger fish comes to gobble them up, the founders and private investors (who will hold the majority of the stock anyway) can monetize their holdings. Right now the company is essentially worthless except in intellectual property, and their user base data. But that data will be worth something to a larger buyer. Having a public stock monetizes that, and selling the initial stock brings in some cash while also hedging the founders/private investors against collapse as the IPO comes out of their current private holdings as well as the company's own shared stock.

Why would anyone buy into it? Hoping for a quick rise in price and a fast turnaround. Day traders. And, if it takes a dump, short sellers.

ah...,

big brother wants to know MORE!!!! MORE!!!!! MORE!!!!!!

thanks Datsun

#FBB

wesw wrote:it has a 500 million loss this year, and sees no path to profit.

Where does it say this? Its revenues increased 600% in 2016 and it is the favored social media outlet for teens and twenties. It may well be over-valued but many are optimistic about its chances to be a good investment. Only time will tell if it can be as successful as Twitter, Facebook and Instagram, or fade out like Myspace, but there are plenty of people willing to take the chance.

I believe it was a statement from the company itself.....

I could be wrong, but it was reported that way

"Reported that way" where?