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 I recall correctly, they were targeting an initial offering of around 500 million shares. I’m not sure if that’s on top of what management assigned themselves in order to keep control...I think it was something like 57%. If that means they have another 500 million+ shares out there, or even if it means they have 260 million or so and they’re selling 240 million, then that’s the Mona Lisa question. It’s worth a fortune because there’s only one of them. Other than that it’s just a picture and WalMart has pictures for 19.99.
Hopefully, buyers aren’t pretending that they’re getting in on the ground floor of something with 250 million to 500 million shares out there to be bought.