You shorts don't realize that we are traders looking for a short term pop. You shorts think that things go straight down. Not even Enron went straight down. FB will go up at least 20% soon, and then it will go back down. Both longs (who enter now) and shorts (who entered weeks ago) will make money on this stock.
No one is going to buy this back if the profitability of each subscriber continues to drop like it has for the past two quarters. Just because a stock drops from $38 to $15 doesn't make it a bargain. When I2 Technologies dropped from $250 to $100 was that a bargain? The people who held it all the way to $.25, yes that's right, .25 cents didn't think so. If FB can't turn the earnings number around fast, this thing could go well below $5. I still believe there was fraud involved in the pricing of the IPO. A stock just can't turn from highly profitable to highly unprofitable in less than two quarters. No CEO is that bad.
The stock has made 15 new 52 week lows since firs day after the IPO.
Would you have said this when it was
May 19 New Low
May 20 New Low
May 29 New Low
may 30 New Low
May 31 New Low
June 4 New Low
June 5 New Low
June 6 New Low
July 27 New Low
July 31 New Low
Aug 1 New Low
Aug 2 New Low
Aug 15 New Low
Aug 16 New Low
Who knows where the bottom is. It currently trades at 39 PE 2012 earnings. If they slowdown or miss it will drop hard.
Alot of Early investors got in between .01 cents and $7.
Employees got their shares for FREE, they can unlock those 1 Billion+ shares in next 3 months to more Bagholders.
it just seems the general public always are late to the party and the IPO system is 80% against them most of the time.
Correction. The employees did not get theirs for free. They have to declare their shares as ordinary income in lieu of compensation. So each employee has a tax liability on $38 per share. If they didn't buy puts, they had better sell now. At least they will have a little left over after they pay the tax on the IPO pricing. If they wait until zero, they will have to pay the tax from their own pocket.
Yes, and Andrew Bachman of AndrewBachman.tv said... DEMANDED that Facebook not be sold/shorted ever, including it's opening day. BTW, Andrew Bachman also said Apple was a short when it dropped down to 525.