A company that has revenues of $4bn is not worth $100bn. Either Facebook has to seriously increase it advertising, which would piss people off and probably cause them to leave, change it’s business model, which they haven’t announced, or this IPO is pure speculation that one day Facebook might be worth $100bn, in which case you’re not going to get a return on your investment because the value of the company hasn’t changed. I think some people are about to lose a lot of money.
Although I’m sure Goldman Sachs will buy some stock and sell it on for twice the price before the bubble bursts, then short-sell their buyers stock and make a handsome profit on the loses.
On second thoughts, I think I’ve found a way to make me some money!
This post is posted on Wednesday 8 February 2012.
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