Facebook’s mobile app has been completely rebuilt from the bottom up. It’s finally responsive and quick and worth updating as soon as possible.
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Zynga (NASDAQ:ZNGA) missed their predicted earnings of $343.1 million leading to a stock free-fall of 40% this morning. The miss has also dragged down Facebook (NASDAQ:FB) more than 5%. Facebook is expected to release earnings after the bell today.
With Zynga’s miss and Facebook’s IPO issues, Social Media and Internet Tech is starting to look like a fad. Zynga’s stock is down more than 67% since its IPO in December.
[Image via Forbes]
Joe Weisenthal of Business Insider just published an interesting article about why Facebook never fell below the IPO price of $38. His reasoning? Morgan Stanley, the underwriters that filed and prepared the IPO, bid large volumes to keep the stock from closing below the initial offering.
So what does this mean for Facebook? It appears that the “hot” and hyped up stock could be worth less than $38 in the eyes of the public. Next week, the market price of Facebook should stabilize, which could very well be a price below the IPO. Perhaps the valuation of $104 billion dollars, about 100 times the company’s earnings, was perceived as just too high. Maybe it was the fact that the largest shareholders cashed out, using the IPO to get rich at the expense of the common investor. Large holders like Goldman Sachs announced yesterday that they will be incrementally selling portions of their stake in Facebook. All this doesn’t scream “booming stock.” Could we be falling for the same 2000 tech bubble?
Facebook might, after all, be a long-term investment. Look out for my article this weekend about my predictions for Facebook in the mobile sphere and the longevity of social networking.
[via Business Insider]