Posted on 05/29/2012 1:59:06 PM PDT by SMGFan
— Tuesday, May 29: Closed at $28.84, down 9.6 percent for the day, down 9.6 percent for the week, down 24 percent from IPO price.
(Excerpt) Read more at abcnews.go.com ...
Starting to look like Facepalm.
I’m glad to see this. It isn’t because I want people to lose money... I just want the universe to function as it should.
Wasn’t the revenue based share price something like $11/share before the hype set in?
Post of the day nominee!
“strong support at zero”, per zerohedge.com
Expect FB to quickly rally Wednesday in early AM trading as folks cover their shorts. Fools will jump on this illusion. Duration of up leg extremely limited. One hour to one week at best. Valuation requires some degree of trust.
PE 90ish.
” Starting to look like Facepalm.”
LOL
40% of social media accounts are spammers.
‘Likejacking’: Spammers Hit Social Media
http://www.businessweek.com/articles/2012-05-24/likejacking-spammers-hit-social-media
Articles on the technical sites are stating that up to 40% of the accounts on FaceBook and Twitter are Spam accounts.
Thus, the value of FaceBook is due to another 40% decrease from the already dismall rating it had. I’d guess that instead of $5-6/share they will be closer to $3/share. Again, IMHO.
http://www.bgr.com/2012/05/29/social-media-spam-twitter-facebook/
” Expect FB to quickly rally Wednesday in early AM trading as folks cover their shorts. Fools will jump on this illusion”
Yep......I can see this stock going to the low 20’s.
FB started at $42 and now down to $28.84 per share. That’s a loss of ~33%!
Stock issued to IPO buyers at $38. Opening day traded to about $45 and quickly tanked
90 times revenue is a great deal! /s
And Kaliphorniastan has already spent the money it thought it would receive in taxes. Next step? Raise taxes to replace the money they thought they would get.
Here is the ugly stat. FB EPS $.30. FB would need to fall to $5.00 to be priced in line with APPLE.
What the market is trying to do is determine the value of Facebook, which had been set an an arbitrary value because it’s hard to price intangibles.
If the market eventually comes to agree with what I have always believed was the intrinsic value of Facebook, anyone who is holding Facebook shares would be advised to unload them ASAP, at whatever prince they can get!!!!
Options trading on the stock began today.
Let the games begin.
Unless there is a minimum holding time for options that allowed employees to buy at discounted prices, they better get out before they start losing.
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