http://www.cnbc.com/id/47523622

Trainwreck.  

Interesting. Hadn't heard the Insider trading allegation yet.

All together everybody handled the Facebook IPO about as awful as possible.

You'd think it'd of got a bump from "regular" investors otherwise just pumped by the name.

This is getting to be Dotcom 2.0: Electric Boogaloo, in that valuation is based on hype,  and things that aren't tied in any way to reality, just expected future returns.  As it is now, Facebook is a symbol of what is going on, and what goes on in Bubbles.  Due to a lack of growing sectors (well, outside of Green, and look at how that is going), investors are looking for anything with a buzz to it.  So, they are piling in on the latest hype factor, and overvaluing things, which produces a bubble.  No one bothers to stop and think exactly what Facebook produces.  Nope, it is just seeing the hype and hoping to cash in early on it, which ends up being too late.

Ok, I will step aside while you can go and frag Groupon.

Hey, you made a post that I agree with!

The thing about the Facebook IPO was that it was so over-hyped. I mean, I follow just about every news outlet on (yep) Facebook... and all of them were hyping this thing up to the heavens. I wonder how many "casual" investors got bitten by this? The fundamentals at Facebook are wrong, there is nothing to hold this stock up.

Frankly, I'm starting to think the IPO was just a huge cash-in by the likes of MS and GS (let's face it, we wouldn't put it past them) who know that Facebook is at its peak.

I am holding a belief that we may have fundamentally run out of frontiers that can make the economic growth we have had sustainable.   So, in light of this, at least with the current bottleneck, you have a hot name and everyone jumps on it.  It produces a bubble-like structure.  And people will game it to make money.  Money all flows into the bubble, and not elsewhere.  The bubble becomes a market unto itself.  

Until things get fixed, this will continue.  Not sure who knows how it can be fixed though. Maybe modeling economic activity without currency, and how goods and services flow, might be a way to do this.  If you can figure out how real goods and services flow and exchange with one another, without resorting into a pricing mechanism that guys game in a bubble, maybe we can figure out what is going on.  But, short of this, you will get guys gaming, where you have a celebrity announces they will do something, the lemmings pile in, and the celebrity pockets several million dollars profit.

It is looking like it is a sick system, with money ends up everything, obsessed over, and increasingly decoupled from real economic activity.  And then I can rant about green jobs and green businesses.  Everything now gets pitched as "job creation".  I swear there are perverse people who just don't care but will drop buzzwords to get people to go and do things that benefit them.  On the "green" front, outside of needed sustainability, exactly what is fundamentally done differently with "green jobs" and "green industries"?  What in them intrinsically happens to mean you will need to employ more people, instead of repositioning those who currently are working in other businesses?  And what kind of profitable industry is going to suddenly demand more people be hired than the prior on?  All the Keynesian economics comes from this bull also.  Idea is to go further into debt, stimulate the economic and magically it will produce whatever is needed and wanted, because magic work magic if you increase demand enough (no one asked exactly what deficit spending was for decades if not stimulating the economy, the basis of my quote "Krugman is an idiot", by the way).

Ok, I am on a bit of a roll, which I wil use to wrap up.  We went through the agriculutral and industrial revolutuons that went from demanding large amounts of population to a small amount, and people were then freed up to do what?  

And might as well close with Facebook.  So it makes its money from what, advertising, and people buying virtual stuff in a Zynga game?  Really?  That makes the company worth more than the likes of the companies listed in this article, really?

http://seekingalpha.com/article/607031-facebook-is-worth-more-than-these-companies

Big meh from me.

FB started out at 38 a share and is now at 30.50 bc it was overhyped as an investment. This is wall street becoming rational again. And FB has made remarkable growth but future growth looks doubtful as google+ has grown to almost 200 million accounts, and msft isn't far from putting out its own social media service. Google and msft will assrape Facebook bc they have the capital to add things like maps, integrate their own services, email, video, etc into it. Google also adds to logged in users search results some of google+ threads matching the search parameters. So, it feeds more users into google+ without having to advertise. Soon, google will be feeding more people in through android apps, an area that Facebook has been criticized for moving slow in. Msft and GOOG have this. The two giants win by assrape.

Sorry, FB.

man investors are dumb. I could tell it was pretty clear that $38 was near tops it would get to and zuckerburg sold it to every at that price. People are such sheep paying top $ just because the name. Every one who had shares before would be away laughing because im sure they knew it wouldn't go much higher than $38 either. its 100 times there profit thats crazy.

Nah.  If it was Dotcom 2.0 it would of been bought up at HIIIIGH Numbers then came crashing down.

From the looks of it facebook will settle at 30 or so, and could boost up at any time.

There never really was a bubble with facebook, was never time for one to build.

Which is honestly what i'm surprised about.

I'd argue CNBC covered it pretty well... they gave it TONS of attention and hype but I'd say at least half there coverage if not more was investors saying it was a bad stock and people buying in were making a bad move.

And here come the lawsuits....

http://news.blogs.cnn.com/2012/05/23/oh-zuck-facebooks-bumpy-start-just-got-a-little-worse/?hpt=hp_t1