On the day of the IPO for Facebook (NASDAQ:FB) I made it abundantly clear to anyone listening to me on Twitter (all 10 of them) that Facebook was a nice idea at $15 per share, not $38. In no way does a company with $4.5 billion in annualized revenue command a near $100 billion market cap. At $15 I thought I was pushing it, but at the time of the IPO the idea that the Fed was not going to step in and blow some QE smoke up the equity markets behinds until September was pretty remote, especially in the face of the Greek default and the looming craziness coming from the rest of the PIIS nations.
Not that I’m trying to bust my hand patting myself on the back or anything. I was certainly not the only person calling Facebook a $15 stock. I bring it up to highlight just how retarded the entire situation surrounding that IPO became. It was the ultimate pump and dump. The final kick at the public trough for the major investment banks to fleece the muppets one more time before they get all up in Bane’s grill and say yeah, let’s tear this Wall St. down.
Facebook’s first public earnings report beat Wall St.’s 6″ high hurdle and the market did not buy what they were selling for a minute. the stock was down in after hours trading by as much as 10% after settling down 29% below the IPO price. The bad juju surrounding Facebook now is enough for someone else to come in and build a new social media network for people to satisfy their internet addiction with and do a better job of it, frankly.
At this point the stock will trade in the teens between now and their next earnings report, regardless of what they do right, if anything.
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