Guess I was right on this one. A little common sense goes a long way. And ---in your face!
I was right about how it wasn't and still isn't worth it to buy Facebook stock.
Millions of people must have agreed with what I was saying, because they didn't jump at the chance to buy Facebook stock, which is very much like the story of the Emperor's new clothes.
Facebook stock was originally valued at 42 dollars a share on May 18, 2012 when it first appeared on the American Stock Exchange. Meanwhile FB stock has plummeted to about 29 dollars a share, and continues it's downward spiral.
Even though the media pounced all over this much heralded stock just about saying Facebook stock was going to resurrect the stock market to new heights, bringing the economy out of a four year long slump of impending doom, it didn't happen. God did not come out of the heavens casting his glow on all of us, throwing gold coins, and the world did not end.What did happen was a pitiful display of greed as FB stock fell.
What it comes down to is the biggest Internet company seems to be a farce. It's very much like the story of the Emperor's Clothes---where the Emperor pays a professional tailor to make beautiful clothing fit only for a king, and winds up strutting around naked. Everyone tells him he looks great in his new clothing, while essentially he is wearing none.
This is what happened with Facebook. You see, a very popular company that has 800 million users really does not have 800 million users. Facebook has probably 100 million regular everyday users. The other 700 million users logged on, signed up and never came back. Or they hardly ever come back due to boredom, a busy life, or many everyday responsibilities. Therefore, Facebook is the new Fakebook---which I have been calling it for years!
Facebook does not have a recognizable product that you can buy, put your hands on, use or really see. FB users, stock investors, advertisers, etc, can't physically put their hands on Facebook. That makes it a hard product to sell. And many people do not want to spend thousands of dollars on a product that just might go away as fast as MySpace did, and as fast as Google + is. That makes Facebook a kind of see through product where the people behind the scenes are making things up.
Are there really 800 million FB users?Is the Emperor really wearing any clothing or is he walking around stark naked with people saying he looks great when indeed he looks like a fool?