Anonymous
Anonymous asked in Politics & GovernmentPolitics · 9 years ago

Facebook much hyped IPO is a catastrophe, currently stock is 11% down in early days of trading, your thoughts?

Update:

A catastrophe is when the media and others excite the public over an investment which should is based on low risk goes bust in the first days of trading, 11% that is a loss over $100 million of investors money in an extremely short time.

Update 2:

A catastrophe is when the media and others excite the public over an investment which should is based on low risk goes bust in the first days of trading, 11% that is a loss over $100 million of investors money in an extremely short time.

Update 3:

excuse my math, total lost investment in less than 48hrs is over 1.3 billion, poor investors

22 Answers

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  • 9 years ago
    Favorite Answer

    It takes a very foolish investor to buy stock in a company which owns no tangible assets, no inventory, and produces no product.

    Facebook has nothing to offer except a potential to sell advertising and this potential lies in a very fickle market where a new idea or technology can almost instantly change the game.

  • Anonymous
    6 years ago

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  • justa
    Lv 7
    9 years ago

    It's not a catastrophe, but it is an indication of how desperately we need new products and ideas to invest in that we jumped into this bit of fluff which produces nothing and doesn't seem to make a larger or consistent profit in an industry full of others left by the wayside, like myspace.

    The IPO was limited to very large market investors, and as any of them should know, or tattoo on their upper lip, the market is a gamble.

    Only put into it what you can afford to lose. Which is why we don't need to privatize Social Security.

    It could just as easily be lost.

  • Anonymous
    9 years ago

    Definitely over hyped - this is their strategy:

    http://www.roberttanguay.com/news/facebook-ipo-fai...

    Yahoo has an active lawsuit against Facebook. Don't let anyone you know buy stocks. Invest in local businesses or start your own. All this IPO did was make the founders worthless stock worth something.

    Source(s): http://www.roberttanguay.com/ Yahoo - hire me
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  • Ralph
    Lv 6
    9 years ago

    The main people who who lost money are the idiots who were determined to buy at any share price, thinking "i gotta buy facebook i gotta buy facebook" because they thought that no matter how much they paid, the price would only go up, to make a quick short term profit. Facebook raised a huge amount of money (which was the entire point of the IPO), and long term investors will make a good ROI.

  • 5 years ago

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  • meg
    Lv 7
    9 years ago

    As long as people are losing their own money, it is just rich people exchanging wealth and it does not effect the the economy, It is not only not a catastrophe or even new worthy except on a slow news day.

  • 9 years ago

    It was a hype that people were too smart enough to fall enitrely for.

    Zuckerberg got his billions, now comes the demise of Facebook as we knew it.

    The focus will shift from Facebook users to shareholders strictly.

  • Anonymous
    9 years ago

    100 billion dollars worth of stock for a company that only grosses 2 Billion a year and dropping over the last 12 quarters?

    sounds par for the course for me....

  • Anonymous
    9 years ago

    I think it is a non event for a slow news day. In the end it doesn't really effect you or me. I got to ask you though what does this have to do with politics or did you just ask it because this is a busy section and you thought it would get more answer for putting it here?

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