"Houston, we have a problem" Facebook Fizzles! Fails to Liftoff
Some things just make me chuckle... Like I've said a hundred times:
Groupon's business built on SPAM mail is a terrible business model.
Facebook doesn't have a profit model.
Facebook's IPO was a failure: Yahoo reports in Facebook Fizzles
All that hype for a 23-cent gain! Facebook's (FB) first day as a publicly traded company started with a bang and ended in a wimper. FB shares opened on the Nasdaq at 11:30am et, after a 30-minute delay, at $42 each; 11% higher from the IPO price of $38. Within 10 minutes, that gain was cut in half and stock hovered around $40 for most of its shortened trading day, before officially closing at $38.23.
While difficult to cut through the hype surrounding this stock, some cautionary signs emerged in just the last two weeks leading up to the IPO. We've discussed them at length here on Breakout. Slowingrevenue growth, General Motors (GM) pulling ad spending, and monetizing mobile usage are strong, but not alarming, reasons to question when to buy, how much to buy, and whether this is the right investment for you.
Earlier today Breakout covered the Facebook open live from our New York studio and the Nasdaq market site. In the attached video tech analyst David Garrity of GVA Research highlights some of the biggest issues to keep in mind if you're thinking about buying Facebook after the IPO honeymoon.
I have no position of Facebook... Wish I could short the hell out of this company.