Facebook IPO – Midday

The excitement and tension at this morning’s opening was think enough to cut with a chainsaw.  However, after much speculation on both sides, (heard price ranges of 15 to 80 by days end), FB has settled in at just about 41.  The ridiculous PE ratio of FB should eventually settle the stock in to the 20-25 dollar range, more realistically 15-20, over the next few weeks.  The math just doesn’t add up and the excitement isn’t enough to push it higher and sustain it.  As always, this was an attempt at a get quick rich scheme and while that possibility did exist and still does, short-term, once the excitement wears off, the price will come down.  It just doesn’t have the fundamentals needed to support a price of 40, certainly not 80.  Without meaning to sound preachy, this is one of the major flaws of the market and one of the only legitimate arguments that the progressive liberal occupiers could make.  It’s one big insider, good ol boy hoedown.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s