I read some article a day or two ago talking about funds that buy the shares in the private market before IPO so they can't unload before those lock up dates. Also, the funds still hasn't complete dumping the IPO shares yet so price pressure is here to stay. Naturally they'll starting to throw in the towel, slowly one by one, and FB will be in the discount bin sooner than later. I agree that one more bad quarter or two and FB will likely see single digit due to the shift in valuation criteria. There's still a long shot that somehow FB could turn this around and maybe be a success market story someday. But I'll leave that to the optimists and dreamers. Right now the facts are starting to piling against FB and I think the public in general are very distrustful of hype. So if the price is not right, that it has the right to stay on the shelf.
I knew it was going to be a $5 stock when I heard they had plans for a FB phone... Must be hard to be rich one day and then to lose 50% of it in the coming months while you can't do anything but watch how your promise of your stock options becomes a cheap lie. Staff who had stock in FB must have been thinking that it could be easily over $100 to $200...
Even with the stock down 50%, it could go down another 99% and he would still be worth 8 figures. If you have that kind of monetary cushion, nothing in hard in your life.
Once again, you are welcome Another golden advice : Buy YHOO at 15.90 or lower now (before open). load it up. Sell it around 16.10 or with a profit. Short term trade.
FB isn't going to single digits pretty soon. their book value is over $7 per share ($13B in equity), virtually all as cash. Throw in a few years of projected earnings, and the floor on their stock is $10-12. Read a balance sheet before you make silly predictions
Regardless, I think at this point Zynga should have the decency to rename Farmville Suckerberg. Both because of Facebook's IPO and theirs. Between the two of them a very large chunk of money went straight down a black hole.