Facebook shares drop 10% on its second day, resulting in a 10 billion dollar loss xD

[LKD]

Shares in the social networking site were off more than 10%, down to $34.03 from the initial price of $38 on only its second day of trading. The market value of the firm took a $10bn hit as a result of the slide.

hahaha the most over-hyped business which has little to its assets Seems like facebook's end will come sooner than we would imagine.

 

[k57]

Don't get how this company starts out with a $100 billion value after the initial stock sales. It had revenues of $4 billion in 2010, showing a $1-billion profit. That's a good profit to revenue ratio, but how does that work out to the company being worth $100 billion. And a major company, GM, decides to pull its advertising from Facebook, finding advertising there isn't very effective.

 

[james t kirk]

Could be a good short....

 

[rafterman]

Ha ha ha it's only a loss when you sell your shares below the purchase price he says wistfully gazing at his RIM shares. And I see FB is trading down another $2+ at the open this morning too.

 

[big dogie]

I'd be interested in FB @ about $4.50 per share.
b d

 

[great bear]

I will trade my Nortel shares for Face Book shares even up.

 

[danmand]

I will trade my Nortel shares for Face Book shares even up.

Well, it is your market. You can do whatever you want.

 

[great bear]

Well, it is your market. You can do whatever you want.

And that no Bull!

 

[anon1]

I will trade my Nortel shares for Face Book shares even up.

I'll trade my Bre-X for your Nortel.

 

[OddSox]

[h=3]The Facebook Fallacy[/h]For all its valuation, the social network is just another ad-supported site. Without an earth-changing idea, it will collapse and take down the Web.

http://www.technologyreview.com/web/40437/

 

[great bear]

I'll trade my Bre-X for your Nortel.

Ok done deal!

 

[richaceg]

I know it's early but I wonder how Bono's kool aid taste now. trading at above $15 for this IPO is plainly ridiculous. It's not yahoo, it's not Amazon...it's just a social media site. what does it have that myspace don't?

 

[Aardvark154]

The hurt to Facebook isn't great. However if you had on offer in to your broker to purchase as part of the IPO and paid $38, you may be wondering if that was wise right about now.

 

[Dong Joe]

FB stock closed at $31 today. Here is an interesting article: Morgan Stanley cut Facebook estimates just before IPO

http://finance.yahoo.com/news/insight-morgan-stanley-cut-facebook-051601435.html


I'm no financial guru, but it appears there may have been a shortselling scam going on at Morgan Stanley. :eyebrows: