The company is based on hype. It had not intrinsic value. Its value is based on its users. And we all know that they are as fickle as a they get. Users come and go.
Facebook is expected to post losses when it declares its first quarterly earnings this week since going public. The technology giant’s disappointing performance follows on from one of the most closely watched initial public offerings of all time in May.
Since being launched, however, Facebook shares have fallen in value and closed on Friday at $28.76 (£22.38) – almost $10 below their initial price.
More than half of the 36 financial analysts dealing with shares in the company do not rate Facebook as a ‘Buy’ – historically the threshold needed to encourage investors on Wall Street to part with their funds.
- Facebook Stock – Why it’s not another Dot-Com (optionsanimal.com)
- Will Facebook earnings be THAT bad? – The Buzz (buzz.money.cnn.com)