To be fair, I don't think anyone missed the initial IPO, given that roughly half the stories on HN at the time were about how terrible an investment it would be.
I imagine that if they had to pull and re-file their IPO (not being a follower of stocks, I don't actually know that to be the case), their re-entry into the market was most likely a little more...quiet, shame-faced and chastised, as it were.
Likely I'm just remembering the chain of events incorrectly then! But either way, yeah... that was a boat I saw along with the rest of the tech community that was trying to bail water as quickly as it was coming in.
Facebook and GroupOn are too small a sample size to draw this conclusion.
Have you accounted for general market trends? Seasonal cycles? Comparisons to other IPOs? Contrast with other types of companies that aren't part of your perceived bubble?
huh? I'd believe this kind of nonsense only if it were coming from a founder who had exited via this strategy and was buying a round of drinks for the bar.
The thesis lacks any real sustainable evidence to back its claims.
sure it's a simple first-pass approximation, but it highlights the real numbers behind Facebook's operations, and how those compare their primary counterweight in the space, Google.
well if it really is then i hope it turns around somewhere soon. As of now, it's looking like 0% for the first day, and even that is an artificial level supported by the underwriters of the IPO. I'd cut your losses, get out soon, and wait until the stock corrects somewhere lower, mid-20s or even below.
FB would have fallen more, but the underwriters of the IPO stepped in at $38 to support that level. This stock is bound to fall after today. I'm predicting $25 by the first earnings call.
Did you watch the stock? It was dropping like a stone, then all of a sudden halted at $38, the IPO price. A WSJ article said that this was because the underwriters stepped in to support the $38 price level:
"The weak start came after high expectations for the Internet giant. The company's shares were recently changing hands up $1.58, at $39.62, after touching the $38 IPO price about a half hour after it started trading. The stock had opened at $42.05.
Underwriters stepped in to support the company's shares at the IPO price, according to a person familiar with the matter. There were more than 30 banks involved in the deal."
This, combined with the effect on other social media stock like ZYNGA (which has halted trading twice today due to large volatility), is a sign of things to come.
