Vanity: Facebook Headed For Sub-$20?

Google Finance ^ | August 1, 2012 | Me

[C19fan]

Facebook has plummeted from $30 a share on July 26 to as of right now around $21 a share. The price has fallen by 50% since the initial pop to $42. It is off 45% from the IPO price of $38. SUCKERS!!

[lacrew]

For some employees, there was an initial moratorium on selling stock...which is about to expire.

I suspect this is contributing to the plunge...along with no prospect of rapid growth, and a bad advertising model.

After the employees get to dump their shares (which is what I would do), the price should drop even more.

[Cyclone59]

IMO, it is because they don’t create anything of value.

[E. Pluribus Unum]

Heh.

[Attention Surplus Disorder]

Here's a company that purports to generate revs by advertising. It's proven that FB'ers do not click on the ads, and furthermore because those ads take up screen room (OK on a desktop screen but truly irritating on a handheld-sized screen and the subscriber has to pay for those ads because they consume bandwidth It's a goofy business model that I do not see as having much of any chance of success. But maybe I'm wrong. I am not a FB subscriber, I was for 45 minutes before I saw the astounding, jaw-dropping, unacceptable security issues with being a member. I immediately closed my account. And, I already waste enough time farting around with computer stuff. I predict this is a single digit stock within a year or so. It is now and always will be dangerous to short it, however.

[4rcane]

-Those who invested in facebook were greedy, gambled and lost
-Those who run facebook are greedy and cashed in billions, now have billions to play with
-Those who run facebook don’t care about their investors.. Their CEO even said so, he don’t care about profit

[reg45]

So, if I had shorted Facebook @ $30, I would already have made 50% on my transaction.

[bkepley]

Here’s proof I’m not a totally heartless right-winger, I actually feel a little sick to my stomach sometimes about the people who bought into this, especially the small investor.

[Nip]

IMHO everyone has forgotten, if they were ever taught, why the stock market was originally established.

It was established to collect small sums of money so a business could be formed to manufacture something.

In the 20th Century this truth was ignored in the late 1920s when everyone tried to make money by flipping the stock. Buy for a small per percentage of the price and then sell it for a profit before they had to pay the entire price. Buying on the margin.

In the 1990’s we saw a variation of this - the “Dot.Com” bubble. Where everything was based of what could happen.

Now we see facebook - a replay of the 1990s.

What do they have in common - none of them collected money to build something; they were all about getting money for nothing.

Unfortunately, we will see it again and again with deeper and deeper valleys to climb out of.

[Mister Da]

Remember MySpace? Not many do.

Facebook’s only value lies in its lack of a viable competitor. In 5 years, Facebook will be worth what Myspace is today - little or nothing.

[texaschick]

I figured this was a bust based solely on the fact that I never look at the ads that appear on my FB page.

[nascarnation]

I don’t like shorting but I’m trying to decide if I should buy puts on FB.

I think this thing could easily be in single digits by the end of the year.

A huge number of currently “locked up” shares will be free to trade in the next 3 months.

[Wise Hectare]

Pay no attention to the lack of a business plan behind the curtain....

[Wise Hectare]

I actually feel a little sick to my stomach sometimes about the people who bought into this, especially the small investor.

Tiptoe through the tulipomania....

[HamiltonJay]

Facebook is an $8-$10 stock, the fact they got chumps willing to pay nearly $40 for it shows Zuckerman et al know how to play fools.

Someday it might be a $40 stock, but today its an $8 to $10 stock

[Jim Noble]

What does FB actually DO to generate shareholder income or increase shareholder value?

[martin_fierro]

[rigelkentaurus]

seriously, when this POS went public, I looked at P/E and thought, this is a $3 stock. Limited growth, give it an 8-10 P/E, not 110+.

[Moltke]

Someday it might be a $40 stock, but today its an $8 to $10 stock

Prophetic, in the sense that what was once a 5 cent Coke is a dollar Coke today.