Will Facebook Be The Next Big Bubble To Burst

United States
May 21, 2012 7:17am CST
I'm seeing a lot of media coverage about Facebook IPO. People seem to be drueling to get a piece of this company, and as I have seen time and time before whenever there is this much hype over something it usually comes down crashing and burning. How do you feel about Facebook IPO, am I wrong in thinking that people are setting themselves for the biggest fall since the Nasdaq crash.
1 person likes this
7 responses
@bostonphil (4459)
• United States
23 May 12
Well, by now, you are aware that the Facebook IPO seems to have been a bomb. The stock is doing very poorly. It went down over $3 yesterday. It seems like Nasdaq made some real mistakes surrounding the IPO. And yesterday, I heard that Morgan Stanley may have engaged in some bad behavior surrounding the IPO. I think that the cost of the stock was too high to begin with and that the IPO would have done much better if the stock was priced at $25.00. Time will tell about what happens with Facebook stock. Things do not look good right now and we will be hearing much more about what appears to be a real disaster.
• United States
23 May 12
I have just heard or read that someone has already filed a lawsuit against Nasdaq and that government regulators are investigating Morgan Stanley. This IPO was one huge disaster. It is almost embarrassing. I am listening Imus in The Morning at 5 a.m. my time. He bought 300 shares during the IPO and is holding on. He has a lot of money so he does not need to sweat it. Facebook is way down in pre-market trading.
• United States
23 May 12
Right now, I am watching a conversation between Don Imus and Stuart Varney on the Fox Business Channel. Varney has used the words disaster and fiasco to describe the Facebook IPO. It was a very interesting conversation. I better understand all that went wrong. Time will tell what will happen. Whatever, at least it is not a boring story. I am glad that I don't own any Facebook stock now but I might in the future when it plunges further.
• United States
23 May 12
I think in a few days it will bottom out, now that the media seems to be trashing the stock, and once it does the prices will go up steadily. I think the media coverage on this whole thing will serve as a barometer, that is of course if there isnt a whole legal mess.
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@aerous (13434)
• Philippines
21 May 12
Yup! But I don't understand that kind...did you know what that mean, my friend.
@aerous (13434)
• Philippines
23 May 12
That called IPO, I really confuse about it
• United States
23 May 12
IPO just means Facebook is making the transition from a private company to one that will be traded on the stock market.
• United States
22 May 12
Which part are you having trouble understanding?
@sk66rc (4250)
• United States
21 May 12
I've heard once, "buy on rumor & sell on facts...". Other than most basic blue chip stocks, I think most will follow trends... Once something new comes out, there will be a buzz all over the place, then it will die off... Some in a steeper cline than others... I remember when Motorola came out with razor phone for the first ime... Their stock of course sored for a while... When one of the major company to utilize the iDen system was sold, Nextel being sold to sprint, motorola's stock fell... Since the iDen system was created by Motorola... And now that Sprint announced they will phase out & purge iDen system completely out of their system, Motorola took another hit... I believe Facebook is gonna be a victim to another hype, eventually... Even now, we can see that the facebook is being integrated into a lot of different systems... You can now sign into other sites using facebook log ins... I don't know, once a single entity gains so much influence in everything you do, it will be that much catastrophic once it fails... Just my opinion...
• United States
21 May 12
I hate to be a doomsayer, but Im on the same stance. I think the fact that Mark Zuckerberg is being blown up like a rock start that it's creating a frenzy that will ultimately hurt a lot of investors. I would love to get in on this myself, but I freely admit I wouldn't know when to get out.
1 person likes this
@lampar (7584)
• United States
23 May 12
Well! The bubble may not burst, but some pains may come along the way in the next couple of week/month for the small investors. The IPO price is over hyped and over valued. Some investment bank's favorite big time investors that received a secret accurate analysis report and review of FB fianncial condition from its underwriter may stand to gain the most after a few day/week once the share tumbled. Those who pay the $38 IPO price is going to get burn and get to see some of their investment money vaporized if they base their investment analysis on the other report specifically used for public reading. There are some hanky panky dealing going on inside the underwriter office regarding the initial public offered price of the company which posed some interesting questions on the IPO process. FCC is looking into the possibility of foulplay at the time of this post. We never known for sure yet how long the probe will take for the truth to come out.
• United States
23 May 12
I think it should lead to some reform of how these procedures are handled, but fortunately it happened early so not too many people were caught in the blast.
@allknowing (130067)
• India
22 May 12
I would not like to connect the FB IPO with its popularity. They are two different entities. Most users may not even know that they have put up an IPO as several members there would not know the abc of investing. If at all FB becomes less popular it would be for other reasons. As is the case with any product it will lose its sheen when users get bored. I am already bored. I was excited when I looked for my relatives and friends with whom I had lost touch with for several years and FB helped. After the initial hype of finding them, there is hardly any interaction now. That is life!
• United States
22 May 12
It's interesting to see that the stock has dropped already from it's opening price, I'm sure it will rebound soon, but I thought it would jump out the gate with big numbers. Apparently people were more cautious than I gave them credit for.
• United States
24 May 12
I believe Facebook will eventually and probably before 2020. But Facebook is a great website that many people rely on as communication.
• United States
24 May 12
I'm sorry what do you think Facebook will eventually do?
@GemmaR (8517)
21 May 12
I don't think that the bubble is going to burst any time soon, because FaceBook is something that everyone uses for different types of things. The very fact that some people log onto their account more than once every hour shows that this is something that isn't going to go away. It is a good business model, and it is becoming more and more addictive with every new game that they invent, meaning that people are gradually wanting to spend more time on the internet instead of going out with their friends. It is a very scary concept, but it is also one that I think the world is going to have to get used to.
• United States
21 May 12
People were just as hooked on Myspace a few years ago, and one big corporate face lift killed Myspace forever. Have you visited the site lately, it went from number 1 to barely on the radar. Everyone knows as soon as Facebook goes corporate there will be a bunch of unwanted changes.