Facebook is a social utility that connects people with friends and others who work, study and live around them.
Facebook Had The Worst IPO Of The Decade
When Alan Greenspan coined the term “youthful exuberance”, he was talking about investor attitude on Wall Street and how things were spiralling out of control without little relationship to reality. He might have well been talking about Mark Zuckerberg and Facebook because the most anticipated IPO in history has turned out to be the one of the biggest flops in history.
Things started bad from day one really; there was a computer glitch (of all things with Facebook being a tech stock) and many traders were frozen out of the market briefly. Then shortly after investors got wind that Facebook had updated their earnings forecast and immediately a few started to the litigation process. It was at this point that the stock started to tumble. And it still is tumbling.
Facebook is now trading below $27 a share and has lost at least a third of its value. On paper Zuckerberg has lost billions and to add insult to injury Forbes has kicked him off the list of 40 richest in the world. Ouch!
It took people observing the crashing of Facebook to say it, but the social media bubble has popped—and the puncture is so large I doubt it can ever be patched. Facebook was on track to dethrone Google has the biggest internet company—it was even starting to rival the search giant in terms of traffic. But all that now seems to have been fool’s gold. A friend of mine put it this way: “I don’t see how people can value Facebook at $100 billion when all it really is a glorified mailing list”. He said that months before the IPO; now it seems he was spot on.