[ACE]

$10.22 per share!



Many people overlooked some major signals that Facebook was not worth $38 per share on it's opening day. in the week leading up to the IPO Wall Street was gearing up it's marketing to make the Facebook IPO look attractive as possible to the retail investor (you). What Wall Street did, firstly, was to raise the bottom opening price of facebook from $28 per share to $38 per share, increasing the price a good 40%, so you can picture paying 40% more for something than you should have. And what's crazy about that is they were just starting to ask 40% more per share based on demand, not fundamentals of Facebook which were and are in fact looking a little grim.

The underwriters JP Morgan and Morgan Stanley ran the IPO for Facebook. Normally JP Morgan and Morgan Stanley initiate an IPO to help a company raise money for that company by offering public shares, but in Facebook's case, they didn't need the money so it was completely about profiting off of Facebook, or cashing in on the popularity of America's second biggest internet based company. JP Morgan and Morgan Stanley's job was to tease hedge funds, the public, anyone and everyone with some cash to spare on investing by saying hey you're going to get in on the ground floor of the next "Google" or "Apple" and in the next day you'll make 1000's of % on your investment.

All the warning signs of that the insiders, the underwriters, even the management at Facebook knew this was the top $38 per share because they put all their holdings on the first day.

The biggest thing that should have scared any potential investor is that GM, General Motors pulled it's advertising campaign from Facebook stating "Advertising on Facebook is not working for them" and advertising is Facebook's #1 revenue source and reason an investor should look for to invest in the company. So, one of the United State's biggest companies stating that Facebook's only source of revenue is flawed should scare anyone into NOT BUYING FACEBOOK STOCK, but people did.

[Davelly]

I was going to ask if Facebook stock would reach $20 per share

But now you say Facebook will bottom out at $10 per share.

That may be a little to low of a forecast.

[LuckTrader]

Facebook at $10 per share... people should have realized it was too good to be true. I'll put my buy orders around $15

[DickP]

[traderjay120]

oh facebook...