Isn't FB now at a high a year after its IPO?
Last year around the FB IPO I thought about what stock to buy. Either FB or Tesla.
It boiled down to a company that is revolutionizing transportation with real world products VS. a company that enables people to click on virtual pixel cows without a real business model.
The choice was easy.
However, I hope people stop and think before listening to you. Yes, it's really cool that Elon hit it out of the park, but at the end of the day, that's not the way to make investment decisions. The market is a fickle place. TLSA could be worth have as much in a year and FB could be worth double. Of course, TSLA will still be worth more since its IPO price.
Let's just say that when a company like Facebook or Google, which builds large data centers, and has a billion customers, make small changes, or increases in efficiency, they have an opportunity to make a big impact too.
Where you want to rank them in your mind on an absolute scale, well, that's really up to you. It's probably meaningless, but I guess people like to believe in people/companies. It's how we're wired.
Tesla makes a tangible good for sale with a straight forward business model. You can evaluate Tesla using the same criteria that Ford was evaluated with 90 years ago, same way that Westinghouse, or GE were evaluated. They are a new technology with a potential to revolutionize a major industry, with a high risk of failure and high return on investment if they succeed. For Facebook or Twitter a savvy investor has to first theorize how to even evaluate them.
The investment potential in a facebook or a twitter is there definitely... but its much easier for an investor to evaluate a tesla compared to a facebook.
I don't think it's reasonable to expect all tech companies to gain 20% on the day of the IPO. If they do, that's an indication that existing investors are reliably leaving a ton of value on the table.
If you have bought a stock at one price, and it currently has a higher price, that means you have made a good investment, regardless of what happened in between.
Actually, the current stock price suggests that the IPO valuation was just about right and that other factors contributed to the initial tanking.