” Share prices that started out at 38 dollars have now sunk today to 34 dollars. “
30 dollars today.
Why yes, I think I will put all my life savings into the hands of a 28 year old liberal now...........
I don’t get it...he says Facebook is a good investment, even if you don’t make any money? Because Zuckerberg is a clever guy, and you get to participate?
This whole IPO continues to boggle my mind. By normal standards, I value Facebook at $6 a share. By ‘tech’ standards, maybe $12. As far as I can tell, the $38 price tag gives you a ratio of earnings to price of 1.5%....which I can probably match in a much safer investment at my local bank.
Its just stupid....and I’m afraid to see if any of my mutual funds participated in the nonsense.
I fail to see the logic behind the whole FaceBook IPO.
No established revenue stream, the only way they can hope to cash in on the adertizements would be to sell personal and private data about their users. This will result in lawsuits and ill-will.
All FaceBook has to offer is “good-will”, yet they have been found guilty of tracking user’s web surfing patterns after their customer has logged off. This is not the practice of a company that has the long-term perceived value of their customers close at heart.
Much like MySpace - and that is a VERY accurate comparison, (unlike comparing FaceBook against Google) - I fail to see a sustainable situation where this will generate revenue.
After all, the sole purpose of a company is to generate a profit. The current stock price reflects nearly a 100:1 P/E ratio.
I predict that the stock will continue to crash - hitting the sub-$10 mark within 30 days.
You don't spike the football until the ref calls it a touchdown.