By Staff report
A global frenzy buzzes now like so many angry bumblebees. At any moment, a company started in a dormitory just eight years ago will sell promoted common shares to the investing public and become the hottest technology diva ever. Unusual animal movements have preceded extraordinary natural disasters—might they also mark onset of man-made financial mayhem? Hundreds of millions of us like using Facebook. At first blush the features and benefits seem a compelling bargain. But as far as investors in this offering are concerned, are valuation levels for Facebook’s Class A common shares supported by realistic hope or by artful hype? – Washington Times
Dominant Social Theme: Now that Facebook is worth US$ 100 billion, where’s the next hot deal?
Free-Market Analysis: Frankly, we’ve been surprised by the lack of articles doubting Facebook’s US$ 100 billion valuation.
This article in the Washington Times, written yesterday, is about the closest we could come, recently, in the mainstream media.
We’ve been frank about our perception of what Facebook is – a creation in part of American Intel, which evidently and obviously has a stake in utilizing the data that Facebook “mines.”
For this reason we have described Facebook as lacking a business model, which is odd for a company that was just valued at US$ 100 billion.
Where is this business model?
Google provides a service – a search algorithm. Microsoft provides computer software. Apple provides innovative and beautiful software.
We had the same nagging skepticism when it came to Yahoo. One day, not so long ago, we realized that whatever Yahoo had been, it wasn’t that now. We couldn’t define, in fact ,what Yahoo was – and others seem to feel the same way. Yahoo is on a long skid down.
full article at source: http://www.thedailybell.com/3902/Facebook-IPO-Is-Bubble-Redux
Personally I would wait for the dust to settle and then short this obvious vastly overpriced stock. Anybody investing in this Tripe should have their heads examined .
- Yahoo! Spin Talk Continues in Shadow of Facebook IPO (thestreet.com)
- Former Yahoo COO Who Almost Bought Facebook Shows Up on IPO Day (mashable.com)
- 104 Billion reasons to keep Facebook free for ever ? (alainbertrandmu.wordpress.com)
- Yahoo in embarrassing Facebook lawsuit blunder (techradar.com)
- Facebook’s Worth: The Debate Over the Years (blogs.wsj.com)