Monday, May 21, 2012

Facepalm moment [141/365]

Okay, I gotta admit.
Normally, I'd be happy when I am right. But this time I wasn't feeling too good about being proved right.
I'd (rightly) said FB had made a huge mistake valuating themselves at the price they did. (Read here)

At the boroughs, the stock debuted at $42.05 but soon plummeted to $38.01 before settling down below their issue price of $38 upon close of market hours.

So what does this mean for investors like you and me?
The closing means FB is worth about $105 billion, which is a shade more than Amazon, McD's, HP and Cisco.

While this should not be a cause of concern for people like us, I think FB disappointed since nearly everyone expected double digit increases on the first day. Clearly, not everyone 'liked' FB.

However, not all is lost here. Looking ahead, the company now has it's task cut out for them. The focus lies in understanding how the company will remain relevant in the mobile scheme of things.

Facebook needs to deliver on their promise to be the bigger better deal.

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