Once again, the Facebook stock continues to fall apart, leading to more and more investor losses.
After opening on May 18th at $42 per share, Facebook has fallen to $26 today, a 38 percent drop since its IPO date.
We reported last week that CEO Mark Zuckerberg was losing $16 million every hour, with his massive fortune falling from $19.7 billion on IPO day to just over $13 billion today.
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Originally posted by SmaryJerry: 56 billion isn't the valuation. This is only the value of stock on the market. The actually value of the company is still higher.
What do you mean the "actual value" is higher than its market cap?
Originally posted by SmaryJerry: 56 billion isn't the valuation. This is only the value of stock on the market. The actually value of the company is still higher.
Ridiculous and meritless statement!
Technically the "actual value" as you say is ONLY what someone will pay for it.
IMO......and I'd bet my ass on this one, is that IF Facebook were to go up for sale...it would sell for less than 10 billion.
Originally posted by SmaryJerry: 56 billion isn't the valuation. This is only the value of stock on the market. The actually value of the company is still higher.
The market cap is more than the company is worth...otherwise the stock would not be falling apart. The market isn't always clear on things like this, but when a stock plummets from IPO and just keeps dropping, it does not take a mastermind to figure it out. Even Facebook doesn't think it is worth the current price, otherwise they would buy back stock until the price started going back up.
What he might be saying is... the insider trading may have already bought up/invested in the true value of the stock in the company. Once the public stock hit the market, all the plebes got was this shit we see circling the bowl now.
Buying back failing stock will only play into the hands of of federal investigators once the next earning statements come out. IF those are actually reported correctly.
This is (of course) pure speculation, so those of you mumbling can stand down. However you can throw the that big handle on the 'way-back machine' and remember the dot-bomb crash of the late 90s & see this is simply the same thing trying to happen again.
The public is never going to see the 2nd set of books.
Facebook will come and go. Eventually, people will look back and say "I remember Facebook. Wow, now looking back, maybe I shouldn't have shared so much information with the world. It seems so narcissistic . And maybe It wasen't right to post pictures of other people on my profile without their permission." imo
