Rats leaving (with booty) a sinking ship. A ship that inexplicably makes money off a multitude of people that feel compelled to broadcast their uninteresting lives for the rest of the world to ignore. Advertisers, and investors, are getting wise very quickly.
Faceplant the fraudulent IPO. CNBC should be named as a conspirator to the fraud while we are at it.
Buying stock in FB is a lot like buying stock in vapor- nothing in it and will soon dissipate.
I’m not a stock broker, but I’m thinking a software based social site that could feasibly go away as quickly as it arrived isn’t ever really worth more than 15 times its earnings, and I think that is a stretch.
Suckers. They’ll never learn.
The stock could really drop like a rock when the employees start selling their stock.
If the employees got stock or stock options without having had to buy them in the first place, they could make lots of money selling, even if the price drops further.
Could it be that Facebook was over-hyped to start with?
Does Facebook make money only from the ads on the site? Users don’t pay a fee to belong, so how does such a company earn revenue?
Well, any company is worth whatever the collective decisions of buyers and sellers decide through their actions. If the market gets flooded with shares from employees selling, and there aren’t buyers for those shares, the price will fall.
The initial offerings were to FB insiders, then the big name brokers, then the general public. It was a ponzi scheme that made a few a lot of money, but everyone downstream was just stupid. IMO- FB isn't worth $5 per share.