The Facebook IPO

I hope everyone who read my blog piece concerning the Facebook IPO heeded my advice. If you recall, I was VERY skeptical about the IPO and warned readers to avoid it completely. It looks like what I predicted was spot on, the stock is now down to $32 a share from the IPO price of $38 and all of the people who invested their hard earned money have lost a bundle.

Where will it go from here? I'm not sure but I doubt if it will be the next Google or iFruit company. Facebook just doesn't have a business model that inspires investors to jump on.

Frankly, and I'm far from a stock market expert, I think Facebook should have offered half the number of shares they did and priced it in the low $20's creating a high demand that would have driven the price higher. Of course, all of the Facebook insiders wouldn't have reaped the rewards they raked in in those first few minutes making them all very rich. Greed wins out over good business sense once again.