Wednesday, August 01, 2012

New fear looms for Facebook investors


New fear looms for Facebook investors



Facebook's overpricing of its share price hurt its shares at the IPO, and it looks as if the shares continue to drop.  This is bad news for Facebook because as it loses more shareholders, the price of the market shares rise, which could prevent new investors from jumping in.  Perhaps the Facebook team knew what it was doing and was willing to take a risk by releasing shareholders in exchange for increased sponsorship and ad share?  If the FB team believes in the power of social media in general and the strength of the FB brand in particular, then they have faith that there will be enough business from clients to offset any need for more investors.  Time will tell....

http://www.siliconvalley.com/news/ci_21211066/new-fear-looms-facebook-investors 

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