Monday, 21 May 2012

Facebook Sinks On First Day Without Underwriter Support

REUTERS.COM: Facebook stock sank on Monday in the first day of trading without the full support of the company's underwriters, leaving some investors down nearly 25 percent from where they were Friday afternoon.

Facebook's debut was beset by problems, so much so that Nasdaq said on Monday it was changing its IPO procedures. That may comfort companies considering a listing but does little for Facebook, whose lead underwriter Morgan Stanley had to step in and defend the $38 offering price on the open market.

Without that same level of defense, its shares fell $4.64 to $33.67 in the first minutes of trading. That represented a decline of more than 12 percent from Friday's close and about 24.4 percent from the intra-day high of $45 a share. » | Chuck Mikolajczak and John McCrank | Moonday, May 21, 2012

My comment:

Facebook is a bubble just waiting to burst. It's worthless tripe hyped up by people who should know better. Just goes to show how little the investors know about investing. How can a company that deals in chit-chat, gossip, and banalities be worth so much? What does Facebook own, what are its assets? What does it make? What business experience do these nerds have? What does it contribute in real terms to the economy? I think the answer to all those questions is a resounding sweet little, or even nothing. Facebook will sooner or later go the way of all the other bubbles. It will fart its way into the four winds. – © Mark

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