Exactly what I was thinking. They missed a 90% overvaluation of the company?
I think the valuation of many of these Internet firms are overinflated, but this seems WAY beyond just overvaluation. Although Facebook pulled a bit of a stunt with their valuation notes when they were doing their road show prior to their IPO. Their advertising revenue models were based upon computer users and did not include the proper valuation of users who access through mobile devices. They made the change the week before the IPO and it made a huge difference in their projections, but they didn’t make a big announcement about it.
Basic takeaway from all of this is that the stock market is no place for individuals. It’s a computer game probably no more secure than online poker, except you’re playing against thousands of investment houses with better information than you.