Fat Cat wrote:Facebook will tank. Here's why. As a publicly traded company, the idiots who have purchased stock will demand short-term returns. To meet this demand, Facebook will start to squeeze the consumer. As they do, they will lose their market, who only began using their product because it was: (i) free, and (ii) convenient.
MZ still controls a majority of the shares, can dictate the direction of the company and will not do what you describe as it goes directly against his philosophy for the company. When FB goes down, it will be for other reasons.
One of the downsides of the Internet is that it allows like-minded people to form communities, and sometimes those communities are stupid.
From one perspective the fact that shares didn't pop on the open on Friday indicates that FB management did a good job of wringing maximum value out of the underwriters. If the syndicate had given FB $38/share for the chunk that they put on the market and the price rocketed to $76 in trading that would have meant that FB left all that money on the table for the underwriting banks to take for themselves, in addition to their fee. Sure, the book value of the shares still in the hands of company insiders would be marked to that as well, but the actual loot from trading would belong to the trading desks.
However, the fact that the price has declined precipitously since then is still a black eye.
Grandpa's Spells
