May 30, 2012

Facebook - worse than Meh

Glad I didn't buy into the hype. From Forbes:
Facebook's Fall: Slide Carves $21B Off Market Cap In 7 Trading Days
When Facebook went public May 18 its offering tipped the scales at $16 billion, the second-largest U.S. IPO on record. A bit more than a week later, the social network is leading a slightly more ignominious list.

In terms of market capitalization, Facebook has been the biggest loser since its debut among the companies in the Russell 1000 index, according to Bespoke Investment Group.

From May 18 through Tuesday, Facebook has lost $21.8 billion in market value (market cap is share price multiplied by number of shares outstanding). That figure dwarfs the next biggest declines over that span: $3.6 billion for Dell, $2.9 billion for Pfizer and $2.5 billion for Google, the company whose 2004 IPO was used by many as a benchmark for the Facebook launch. (Rounding out the not-top 10: Johnson & Johnson, Procter & Gamble, EMC, VMWare, NetApp and Lowe�s.)
Ouch! It will be interesting to see where it settles out. I am betting somewhere in the $8--$10/share range. Posted by DaveH at May 30, 2012 9:18 AM
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