I have read quite a few articles that are laughable at best, on the "failure" of Facebook's much anticpated IPO.
One article refers to an analysis saying that Facebook's stock should be worth pennies per share. Go back and read articles and predictions from when Google's IPO first came out, it's amusing.
Here are the first two words why Facebook will not be failing, at least any time in the next 5-7 years:
'Sheryl Sandberg'
Go ahead and read the short bio on her Wiki. I'll wait.
Here's the first paragraph, "She has served as the chief operating officer of Facebook since 2008. Prior to Facebook, Sandberg was Vice President of Global Online Sales and Operations at Google. She also was involved in launching Google's philanthropic arm Google.org. Prior to Google, Sandberg served as chief of staff for the United States Department of Treasury. In 2012, she was named in Time 100, an annual list of the 100 most influential people in the world assembled by Time."
You rarely hear about Sheryl, but rest assured, she is making waves within Facebook for their future. People write opinionated articles as if Mark Zuckerberg is head of operations, never mentioning her.
And here is one simple word on why Facebook's stock shot up, then settled down.
'Speculation'
The stock rose up to $45 per share based on what could be, rather than Facebook's currently reported earnings. We will see what the stock is trading at in 12 months. Facebook's original offering price range was $28-$33, and as of this writing it is trading at $27.36.
It's funny to read an article that tries to explain why Facebook's shares "are down more than 30%", when they don't include the fact the '30% up' was a false inflation mainly based on hype and uneducated investors flooding the market.
People should get over the silly notion that a company that is approaching 1 billion in active users is somehow going away any time soon, and also let go of the view that Facebook's only way of revenue is ads. While ads still make up about 90% of their income, there are a lot of ways Facebook is going to be able to monetize their platform...