Facebook's first couple of weeks as a public company,
most observers agree, now appears to have been an unmitigated disaster.
There was the first-day NASDAQ (IXIC) trading scandal, in
which many people who bought Facebook stock didn't know whether or not they
owned it. There was a selective
disclosure scandal, in which Facebook and its underwriters told big investors
that Facebook was having a weak second quarter but didn't tell small investors.
And, of course, there is the stock price. Facebook's stock
is now down about 25% from its IPO price of 10 days ago. That's an extraordinary decline for a company
this large. And with the stock still trading at about 45X next year's consensus
EPS estimate of $0.65, the shares are arguably still expensive and could
therefore fall further.
Meanwhile, Facebook CEO Mark Zuckerberg is...On his
honeymoon in Europe! The world hasn't
heard a peep from Mr. Zuckerberg since Facebook went public...
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