All the facts were there, it's not like nobody knows anything about Facebook or the prices of other online companies like Google. As inflated as the starting price was, most big investors were encouraging people to NOT buy the stocks, because really Facebook the way it is now has little potential for growth. Right now their growth is based primarily in their membership growing. But only so many people can join, and they are very close to hitting that membership "cap" (unless they go even more international very soon). So if all of their revenue is from ads, then once that membership stabilizes the only growth in revenue that can occur is if they raise the prices for their ads or start adding more services which cost users money (which a lot of the Facebook community is dead set against, and Zuckerburg has said he doesn't want to do).
I just don't feel like this is anyone's fault but the investors. Was that starting price too high? Yes. But as far as I know they didn't try to lie about what they were or what they were capable of. If people actually did some research beyond the hype they could have seen it was a bad investment.
I just don't feel like this is anyone's fault but the investors. Was that starting price too high? Yes. But as far as I know they didn't try to lie about what they were or what they were capable of. If people actually did some research beyond the hype they could have seen it was a bad investment.