Don’t buy individual stocks (unless you really know what you’re doing—and very few people actually do).
And people were surprised that the FaceBook Insiders were in a hurry to dump as many shares as they could, as fast as they could.
The average employee was worth $3 Million in shares - what would you do, Cash in your $3 Million or hold on and hope that FaceBook wasn’t another MySpace? I’d take the $3 Million so quickly your head would spin. Would I still work? Yup - and hope more stock options came my way. But, my financial worries would be few, and far between.
Actually there was only one problem: the initial offering price was too high. Perhaps way too high.
That didn’t take long.
Changing the ticker code from FB to FU.
Zuckerman’s losing Face.
I overheard two people on Friday at work talking about the price they got for Facebook stock. One of them paid 40 dollars a share. I said nothing except “Wait til Monday”. All those people that became instant millionares on Friday had to sell it to someone. If you fell for the hype on Friday and bought, all you did was buy the shares that were being dumped to create those millionares. At the end of trading on Friday the underwriters had to come in and support the price or it would have dropped then instead of today. A social networking site? And just what product does that produce?
Lots of talk over the weekend that Facebook was originally valued at $6-7 a share, based on revenues.
It will eventually find it’s way to that value, after the issuers can no longer legally prop the stock, in a month.
The stupid muppets get fleeced again.
I have always stayed away from Initial Public Offerings, IPOs. A falling share price for an IPO is nothing new.
And unless I am mistaked the IPO price includes a markup to pay for legal fees, registration fees etc. Nothing that goes to creat value for the company.
Ponzi scheme fail.
The same hopeless hype is propping up Obama’s poll numbers in the press.
Anyone look at what happened to MySpace’s stock?
I suspect that some of the crowd left MySpace for Facebook simply because NewsCorp bought it.
Facebook has many users who use the service but aren’t happy with it. The cool kids could all find a new home within a month they are that fickle.
Facebook is nothing more than an idea and a website. The principle value is in the value of the computer hardware and the good will of the company. The stock was based on some idea that a website company with a few million dollars worth of computers and hardware and an idea that anyone on the planet can steal is somehow worth more than all the combined hard assets of GM, Chrysler, Ford, Peterbilt, Caterpillar, Nissan, and Mazda.
One would have thought people would have learned something from the internet bust in the 1990’s.
History repeats itself and there is a sucker born every minute.
If you’re reading this Zuckerman, I know you’re on your honeymoon, but you have to pull out and get back to the office....NOW!
Give it time it will hit $100. It’s just falling due to jitters but later on, watch out! Bang zoom to the moon. FB is the most popular website in the WORLD second only to Google, it has close to a BILLION subscribers and gets more everyday. I say it goes below $20 and stays around the teens and thats when Im buying.
sigh - I got stuck in meetings last week and forgot to short it...
It looks to me that the inside buyers (you know, “normal” people like Nancy Pelosi and Facebook employees) bought in low in a sweetheart pre-buy option - and then they all sold on opening day.
They made millions.
The lumping proletariate? No, you suckers have to buy in the market and it tanked because the sweetheart’s were selling out and the initial IPO was over-valued by, like, 600% because the same dip $%^#s who wrote the Stimulus Bill and lost $2bn at Morgan Stanley (&c.) are the ones who put a random dollar figure on a Facebook share.
Sucks to be a sucker.
Poor Man’s Summary: This IPO is a great example of Liberals making liberals rich in the only way that liberals know how: Scamming the public to make money using money they never actually possessed.