is it any surprise that facebook stock has plummeted so far?
it opened at an ambitious $38/share. it's now below $20, just four months later.
that's a little more than market volatility, if you ask me.
in the days leading up to the IPO, it was being announced on every media outlet in existence, every hour, on the hour, sometimes several times per hour.
i repeatedly warned my friends not to invest.
i told them it would, at best, end up like the dot-com bubble of the '90s: that it wasn't a good long-term investment.
i said that the only reason they would open the company to public investment is that they're not generating sufficient revenue from advertisements to support themselves anymore; that the actual value of the company was being crushed under its own gravity.
few of them listened and bought anyway.
now i'm laughing at them when they whine about how their money is halved.
my prediction has come true more quickly than i thought it would, and i don't expect there to be an upswing big enough, soon enough for the company to sustain itself. my bet is that they're in more trouble than they let on.
what are our thoughts on this?
what do we think the cause for facebook's horrible performance in the market is?
what do we think the result will be, i.e. effect on society etc.?