Huffington Post
See Facebook Stock Collapse Contributes To Mistrust Of Wall Street (Huffington Post) if you care.
… the Facebook IPO had examples of pretty much everything that is wrong with the stock market today. Media and analyst cheerleading? Check. The destructive influence of high-speed trading? Check. A system built for insiders to profit while retail investors pick up scraps? Duh.
“This constantly erodes the confidence of the average investor,” said Joseph Saluzzi, co-head of stock trading at Themis Trading. “It’s why we see money coming out week after week from stock mutual funds. People are tired, frustrated with it.”
Facebook’s stock price was down Tuesday more than 4 percent to less than $33 a share. After months of hype leading up to the social network’s initial public offering, the stock is down 14 percent from its IPO price of $38 and nearly 28 percent from its $45 peak on Friday, its first disastrous day of trading. The company has lost about $15 billion in artificially inflated paper market value in less than three days. Update: Things got a lot uglier after we filed this post: The stock ended trading Tuesday down nearly 9 percent at $31. That’s an 18 percent decline from the IPO price and a 31 percent drop from its peak price on Friday.
– P
See also: Greed? On the sharemarket? Never!
My hands not raised, but if I had some long term investment money hanging around I would go long on Feecesbook. I think when it starts to add revenue streams that work ie not Banner ad’s it would be a good investment.
I see you have sourced this Article, from the Huff Po, I heard a comment by your Man Obama, slamming the crappy company.
Yes, its in Jest but its the Truth. FYI Arianna is a nasty piece of work.
http://www.cbsnews.com/video/watch/?id=7407028n
Yeah, I saw the ‘linking to’ crack watching the WH Correspondents’ Dinner: http://www.thepaepae.com/pres-barack-obama-at-the-2012-white-house-correspondents-dinner/23091/
I’m not a Huffington fan:
http://www.thepaepae.com/the-attribution-argy-bargy-recidivist-huffpo-ruffles-feathers/17797/
But they’re sharp and sometimes an easy digest, or in this case, a roundup of public news.
No surprise here, though, in my experience, I should point out that this normal – also it should continue to drop, perhaps 15% from its initial offering price and then hover there for the next year.
Eventually, once people start to figure out that the company doesn’t actually sell anything (though it does have enormous potential to do so), and its “product” is totally dependent on the fickle nature of internet users, then the price will drop once more – where it ends, I can’t say. But during the Tech. Stock bust of the 1990’s I saw real companies with real products fall below 3 cents from highs of $40 I lost money back then, but I should have known better, because…
… while I was in University (here in the States), it was a requirement that all the science based majors create their own web-site. In the early 90’s, my own web-site, UNIX based, and written in basic html and with scripting tools available off the University’s servers, I had a site comparable to this one “The Paepae.” It was raw, but it worked. Now, these days, with my knowledge and background in C, VB, dBase, Script, HTML, XML, etc. I could build (easily) a comparable web-site to Face Book, in less than a week. I have no desire to do this – but there are many thousands out there, who do – and they will.
People are people – and we love to gamble. It’s human nature. I learned my lesson well, and tried my best to impart my experience on the NZ housing market spruikers – I got out early, and thank God, I did. But speculation into businesses that one does not understand, always ends badly. Nothings changed.
Best stockmarket book title EVER:
“Where are the customers’ yachts?”
Amazon: http://j.mp/LgpdvW
Perhaps – its a case of something that produces nothing of any tangible value … being accorded its true value over time.
Or then again … maybe not.
My guess, short term, over the next few weeks, we should see some Venture Capitalist buy a few hundred million dollars worth, and its price will stabilize, and then remain steady – and as I said, for about a year or so…
Facebook is in my opinion – a metaphor for what Western Civilisation has become. A storehouse for people, systems and things – that produce ‘zip’ and end up having huge social and economic consequences.
One day we might revisit – producing and investing in people that produce – real, tangible, valuable, things. They tend to generate work – further investment and rewards.
The sharemarket is just another speculative fantasy – generating nothing – as fragile as propaganda and about as useful.
Ivan you’ll enjoy this analogy from
Slate.com…
http://mobile.slate.com/articles/technology/technology/2012/05/business_insider_a_terrific_news_source_.html