Who inflated the Facebook IPO stock balloon?

FB controls almost no physical assets & has only about 3,000 employees. Their turnover last year ~ 3 billion and profits around ~ 1.5 billion. In value per share of $38 capitalization market is around 105 billion. This means that the P / E = 70, compared to ~10-12 for Apple! Apple does have quite a solid business, as all indicators show. Even if we assume a P / E = 15 (true that it is better to use P / E compared to Google's case, but a rough estimate is at stake) this makes a real market capitalization of 22.5 billion dollars, which makes roughly 8.15 $ per share! So if this assessment is correct, there's a long way to go down for the FB shares. Even a child can make this simple assessment and realize what a huge overinflated balloon this is!

So I'm asking, who inflated the Facebook balloon and got all the investors to "invest" the pension funds and the 401k's of the people into this pyramid scheme? (out of personal interest and to sue his ***!)

I didn't personally invest in this, because it was an obvious money hole, but the company who manages my pension fund did, without even asking me! And now my saving's performance is tragic!

5 Answers

  • sabra
    Lv 4
    4 years ago

    the business enterprise delivers centers, and gets merchandising revenues. by capacity of your definition, neither google, a hair salon, inner maximum health club nor u . s . a . club has a product, and are all valueless. it could have been a ripoff, yet particularly replace into an overhyped undertaking that have been given human beings excited because of the previous due ninety's furor over tech ipo's.

  • JoeyV
    Lv 7
    9 years ago

    It was so simple and I was posting all about it here and everywhere else. Sometimes there are hard ones and sometimes there are easy ones and this one was an easy one.

    The pseudo-smart who try to paint the world with the same brush really honk me off.

  • Raysor
    Lv 7
    9 years ago

    Oh if it were so simple. What do you make next years earnings? And the year after and the year after etc.?

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  • ?
    Lv 7
    9 years ago

    under educated masses who can't remember

    DOT,com failure and mass media hypesters.

    Source(s): biz owner
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