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Showing results for tags 'ipo fail'.
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Since the listing of FB, the stock has dived. I've added AAPL, GOOG & NQ for comparison. As I'm sure you're aware, it hasn't exactly been a smooth few days for stocks since the FB IPO, but then FB has done particularly poorly. Why is this? An over-ambitious pricing of the stock perhaps? Or a less than brilliant vision in the eyes of investors for how the company intends to make money? Or maybe it's something to do with all that technical nonsense that happened on the day at the Nasdaq? Well clearly none of these things help. But that's not really why FB has done so badly is it? I don't think so. Technical strength is built on fundamental timing. When the overall market is clearly risk averse, with US and German bond yields continually dropping and the specific risk event of the Greek election looming with the backdrop of a wider European sovereign debt crisis, what is the likelihood of seeing persistent strength in any stock? So why has it dropped so much? When stocks drop they often do so quickly when they are breaking from perceived value. What then supports them as they drop? Previous accepted value which we can indentify by studying technical price charts. But there's no previously accepted value for FB is there? Noooooooooo. Whoops. So where exactly does it stop? Anyone willing to take a gamble? The lesson is that if you're a company wanting to list, think long and hard about doing so before you do. Make sure that investors really believe in you. Make sure that you list when the market is moving the right way or at least not waiting for some big risk event to pass. You are not too big for the market to turn you into a flop. Anyway, whatever. I guess that MZ is still mega loaded and I still think FB sucks. :doh:
