Facebook Shares Drop Below $30, $40B Eliminated

[ta152h]

[citation][nom]cookoy[/nom]Better buy Opera and HTC fast while it still has some overrated value. Like AOL buying Time-Warner. 92.3x P/E ratio is way too high.[/citation]

P/E isn't very important, as it can fluctuate wildly. P/S is much more relevant, and it's also way too high until Facebook can demonstrate a clear and sustainable growth.

Another part of this is that the market was up (my stock RMBS was up 8%), and FB tanked 9%. Going down on a down day is one thing, going down on an up day is even worse.

I might be tempted at $20 though, although I don't know if it will reach that low. But if it does, it might be worth it as a high risk investment. Whatever else it is, it's still the dominant social site, and is ubiquitous, and very well known. There is upside to it, but I don't think enough at $38, or even $30. But at $20 ...

 

[bin1127]

If anyone's broker or fund manager actually bought fb, you should talk to a lawyer.

 

[nebun]

this was the biggest mistake ever....why would you buy stock in a company that's destined to fail?....i will give it another 5 years before this company will go under

 

[Parrdacc]

[citation][nom]whysobluepandabear[/nom]Are any of you econ 101 fags out there?! This is what happens when capitalism gets RAN INTO THE GROUND. First, this was a GROSSLY over-valued stock. Second, this has insider trading written ALL OVER IT. This entire stock shows just how corrupt and crooked Wall Street is. Now lock the fuckers up, break down the banks, and start regulating these bastards. Money buys WAY too much these days - see 2008, where NO ONE got arrested or thrown in jail over what they did to this and the global economy.[/citation]

While I understand your anger, I think this just shows that capitalism works. Facebook was over valued and when it hit the market reality hit and showed that Facebook was over valued because most investors knew Facebook was not a company worth what a select few thought.

 

[eddieroolz]

Facbeook was a good way to burn those speculators where it hurt, while more or less rewarding the cautious. Which is a good thing; people whining about Facebook shares clearly cannot do their research.

 

[freggo]

I have been saying it for weeks. $38 is ridiculously overvalued and it will tank... but who listens to good ol' me

 

[Onus]

"Pump and Dump" scheme comes to mind...

What was Facebook going to do with whatever capital it raised? Was that ever made clear?

An "investment" is money spent in the [realistic] hope of increasing the quantity or quality of some desirable thing, from which a return should be generated; the whole pie gets bigger, so your piece gets bigger. That is Capitalism, and how this country became an industrial powerhouse. If, however, a given "financial instrument" pays a return not because the pie got bigger, but because someone else lost, it isn't an investment, it's a gamble. Only Wall Street banksters benefit from this, as they skim fees for moving all this OPM around (while adding nothing themselves). This is why our industrial base is now crumbling.

 

[Guest]

If you own FB stock, cash in and take the money and run... as fast as you can. Sooner or later those idiots on FB who have no life will realize they are the actual product of FB and their information is being sold. That's when FB value will be nill.