Facebook appeared unprepared to launch, and its IPO was wildly overvalued. The question investors should ask themselves now is whether they should bail out, as many insiders and early investors did, when Facebook first went public, because there's a larger wave of potential selling before year-end.
Early investors got the green light to sell Facebook shares for the first time on Aug. 16, sending its stock down 6.3 percent
Yesterday's Facebook mystique has given way to a very public stock market debacle. Yet if the signals involved are well internalized by management and staff, Facebook could well avoid what could have been an even bigger reality shock down the road.
The stock hit a low of $19.82 in heavy trading on Thursday afternoon. It has now lost almost half its value since debuting
Say goodbye to the individual investor on Wall Street. Whatever positive impression they had of the IPO market and the stock market in general was just torched to the ground.
Here are ten reasons why it makes sense to be suspicious of the Facebook IPO, starting with the fact that any overview of the three institutions which handled it might best be described as "rounding up the usual suspects."
As retail investors have seen before, high-frequency trading can contribute to scary flash crashes, as happened to the Dow
-- Calendar and tweets rounded up by Khadeeja Safdar. @EddyElfenbein: Best index name = Hang Seng. Worst = Footsie 100. After