Yes, Facebook stock is struggling and it may struggle lots more as the shackles are taken off company insiders, which will allow them to sell more into the market in the coming months. But Facebook is real. It is not a vendor of vaporware like so many of those dot.com companies that never earned a penny but burned through cash faster than Mark Zuckerberg could burn through old friends.
On May 25, I questioned and debunked Facebook's "active users" number of 900 million in a column. This month, the company admitted that their unaudited numbers are wrong and misleading. Zuckerberg may be a technological whiz kid, but he has yet to demonstrate that he can run a public company.
I hate to be a killjoy, but Facebook, in economic terms, is a mirage, other than for Zuckerberg and anyone else who has founders' stock. It illustrates the need for salvation, not the road to follow to achieve it.
Unfortunately, the Facebook's IPO was not without its critics and the split opinion was evident in the initial trading volatility. Analysts estimate that for Facebook to mirror Google's performance, its market cap would have to rise to close to $1 trillion in the same eight year time period.
If you're reading this, the chances that you are on Facebook are relatively high. And sadly, the chances that you personally will duplicate Mark Zuckerberg's business success are relatively low. What we can do, however, is learn from this success. And particularly, learn from the Facebook IPO.
Yesterday I posted a sublime, cheeky photo on Facebook. The reaction from my friends was swift: everyone loved it! So you can imagine my surprise when I logged onto Facebook this morning and found the picture had been removed due to its violating community standards.
In Facebook's regulatory filing Wednesday for an initial public offering of stock, CEO Mark Zuckerberg included a letter to potential investors about the company's thinking. He described it as a socia...