Yeah. He's a moron. He lost 10bps of his net worth on one trade. No one here ever loses that much on a trade.
I think he should have kept adding to the position. In the last 10 years, I don't recall any IPO that tanked right out of the gate. If they dipped first they reached the IPO's price later on. Just like ZNGA. It dipped from $10 to 8, just to go up to 15-16.... So had he kept averaging in, he would be in profit or at least break even right now...
It doesn't always work that way. http://www.elitetrader.com/vb/showthread.php?s=&threadid=113413&perpage=30&pagenumber=2
You guys are so wrong on Cuban....he is smart beyond belief. He was one of the very few who hedged his locked equity in the crash of 2000...so many others lost everything. This facebook bet was a "nit"....he lost $200k on a $5M bet....that's nothing.
In terms of value and current revenue growth, I think the stock is worth $21. At $21 I'd be prepared to buy and hold. And given the fact that the market rarely goes up between may and september, I wouldn't hold a long position until October. So 21 or 22 in October is a good risk reward. Anything else is just gambling.