Thursday, August 9, 2012

The Market's Facebook Freakout





From Businessweek: It’s the dog days of summer, and Facebook’s (FB) stock price is locked in the kennel. Investors are obsessing over everything that’s wrong with the social network. Mark Zuckerberg hasn’t figured out how to make money on smartphones. Several million of its nearly 1 billion active accounts are duplicates, according to the company, and another few million may actually represent businesses or automated software bots—or even pets. Employees will soon be free to sell their shares en masse. Top executives are leaving. And on and on.

It wasn’t too long ago—three months, actually—that investors saw limitless opportunity at Facebook and its social-networking brethren Zynga (ZNGA) and Groupon (GRPN). For Facebook especially, the proverbial glass wasn’t half-full, it was overflowing. Sure, it had issues, but investors couldn’t wait to make the long-term bet that Zuckerberg was building the next Google (GOOG)….

No comments:

Post a Comment