Monday 21 May 2012

Facebook: Failure to launch -25% in less than 2 days


Set at $38 this stock opened at $42.05 on the first day Friday May 18th, reached a modest high of $45 and on the second is trading at $33.
Controlling emotions and trying not to fall in love with a stock are very difficult things to do for most investors.
When a social media company to which members have a very strong attachment decides to cash out on that passion by selling an extremely large amount of shares at the highest possible price, what happens next is a no-brainer.
Reality starts to kick in, social media addicts now shareholders are left with rational investors as potential buyers............ what would the fair price be?

Facebook Shares Plummet on Day 2

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