Tuesday, May 29, 2012

The Secret to why the Disaster of the Facebook IPO Continues

Facebook stock price took another 9% percent plunge bringing the price below $30 for the first time.... problem is more people are accessing FB via mobile, so revenue growths sinks to 10% which gives FB a valuation of $9.59 a share, a 72 percent discount to its IPO price.  p/e ratio is out of wack... Facebook P/E around 60, compared with Google's 13.3...

Short sellers are killing pre-IPO shares owners such as Firsthand Technology Value Fund and GSV Capital Corp...


Look for Facebook to be trading in the low 20s by the second week in June if not sooner....  

This is what happens when Zuckerberg and his CFO think they were worthy of a $100Billion valuation when it's simply a fantasy number and everyone who bought into this fantasy are loosing their shirts...

No comments: