Personally, I prefer to wait for the next big thing. Facebook is showing its age.
Um, it will keep going down. Until it stops. Then it will go up.
Are people really that shocked? This is what happens to high P/E stocks -- they are extemely risky and can fall rapidly, especially when 50% of the insiders are rushing for the exit doors on IPO day.
As we knew, it was overavalued. Yes, some people still bought it. Why? Greed. They think even an overvalued stock can get more overvalued.
With high P/E stocks the risks always seem greater than the reward which is why I advocate avoiding them.
We won't realy know what a "fair value" of Facebook is until after it books two quarters of public finances and the insider-selling window opens up. Then we will have more information on which to base our investment decision. Personally, at the moment, I think shares would be interesting in the low-20s.
Re: and down it goes
Dex
6/4/2012 2:13:50 PM
Well, I can't say that I am surprised. All hype and no substance.
Facebook tumbled to a record intraday low after Sanford C. Bernstein & Co. initiated coverage with an underperform rating and a $25 target price. As of 1:30pm EDT, it's at $26.65.
Thoughts, folks?
Re: Should Amazon be the source of the ire?
driven
6/4/2012 12:24:06 PM
I don't see any problem with creating a shadow FB account. If FB is profiting from our data, then we have the responsibility to find ways to protect it -- by associating it with a nonexistent person.
Re: Should Amazon be the source of the ire?
Tenacious
6/4/2012 12:13:08 PM
I know a lot of people who do that. Guess FB has fewer users than it wants you to think.
Re: Should Amazon be the source of the ire?
Noreen Seebacher
6/4/2012 9:23:34 AM
Made up names. Dead grandparents, fictional characters, alter egos. There's no verification. All you need is a valid email. And how easy is that to get?
Re: Should Amazon be the source of the ire?
Dex
6/4/2012 8:52:36 AM
Interesting question. Whose names do they use on these accounts?
Re: Should Amazon be the source of the ire?
Noreen Seebacher
6/4/2012 8:44:58 AM
Speaking of likes -- and FB users: How many of you have a second FB account with an alias that you only use to "like" things that offer discounts or coupons? In the past week, at least a half dozen people have told me they have created bogus FB accounts that they use expressly for this purpose.
Re: Should Amazon be the source of the ire?
Noreen Seebacher
6/4/2012 8:43:10 AM
That is an amazing number of likes. Looks like a lot of us will like anything for $5 off our purchase,
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