Facebook-Round Two

When the markets open tomorrow morning the world will be watching to see whether or not the stock lives up to its potential or remains relatively disappointing.  It’s really anyones’ guess at this point but one thing is certain, it figures to be another very busy trading day for the stock.  There are many optimists who believe or at least hope, the stock will take off.  The pessimists or realists believe it will maintain its current price or drop 10 to 15 points in the next couple of months.  I still contend that for there to be any real credibility in the markets, the stock should settle in to the 20-25 dollar range.  Simply put, that’s what it’s worth right now, its current value.  And even that range could be a little high.  When you start talking about 100 times earnings and expect the stock to rise, it’s all hope, prayer and possibilities.  Does Facebook have that potential?  Absolutely, but it is going to have to put together several more increasingly profitable quarters and demonstrate other revenue streams before that potential is realized.

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