There was so much hype about Facebook. Now their stock price is sinking.
Well, the market sets the price for stocks, based on the collective opinions of buyers and sellers. Maybe Facebook wasn’t such a great investment at the initial public offering price?
It’s only a great investment if you decided to short the stock! LOL!
Short it, short it, short it!
IMO, those who scrambled to get onto the FB train thought they were buying the equal of Apple at $12. A projected 100B market cap for what, a social media underpinned by a hope for retail sales? Wow.
Anyway, the investment houses now are the market, they control the price of the stock...until the revenue numbers begin to increase, they are stuck trying to maintain the price. They also cannot sell: they have a huge loss if they do assuming they find someone to buy their stock. Classic case of where the sellers make the market.
Maybe Facebook wasn’t such a great investment at the initial public offering price?”
I think you’re pretty safe on that point!