BLOODBATH: Watch Facebook Investors Panic to New Lows

[Mosby]

Facebook’s (NASDAQ:FB) stock has some serious troubles. Facebook was supposed to be the biggest IPO of the current market cycle, but it’s quickly becoming the fastest way to lose money. The stock crashed over 9% yesterday and is already starting the day with more sellers lined up than buyers. This is becoming one of the worst twists for what’s been a story-book business to pre-IPO.

Only one question remains in the short term: how low can Facebook go?

-snip-

If we slap Google’s (NASDAQ:GOOG) 7x revs multiple at its IPO onto Facebook, Facebook will land at $19. If we start cutting into the lofty P/E ratio on justified issues over slowing growth, and slap on a still nosebleed 50 PE, we get $19.50. You can buy Google’s earnings for 18x and Apple’s (NASDAQ:AAPL) for 14x while still getting great growth. So today’s current 75x for Facebook seems, well, financially illiterate.

http://wallstcheatsheet.com/stocks/bloodbath-watch-facebook-investors-panic-now.html/

[Mosby]

1. FB stock is down again today

$26.95 right now (12pm eastern time)

[southernyankeebelle]

2. I don't know anything about the stockmarket but something was fishy about this from the

beginning. I think there was alot of insider trading going on. This is the fallout. The sad thing is people outside wallstreet thought they were getting in on a good deal and now they got hit.

[Quantess]

3. Curious: so who is making out like a bandit in this situation?

Someone always profits from these surprises, right?

[Tansy_Gold]

5. Mark "The Sucker Fucker" Zuckerberg

his brazilian american brazilian partner

the stock brokers who collect commissions on all the buys, all the sells

[Mosby]

15. and all the other insiders who sold some of their stock already. nt

[sharp_stick]

6. Options players

you can more or less place a bet that a stock is going to fall and when it does you make the money off of someone who was betting that it would never get that low.

Whenever a dollar is lost by someone there is someone else that has received that dollar.

[Harmony Blue]

12. The short players

are making a killing.

Unfortunately, if you are not even remotely a follower of the stock market this was indeed a trap.

[MadHound]

4. Facebook was always a sucker's play,

From the day they decided to go public, to the coy selling of the IPO, it has been nothing but a clever gimmick. I mean really, you're valuing a company that makes, maybe, a billion a year at 100 billion? That simply doesn't compute, never has.

But hey, Zuckerberg and his buddies have made out like bandits, and even if(please dear God make it so) Facebook collapses and folds tomorrow, they will walk away with billions. That's all they care about.

[richmwill]

7. And now people are filing lawsuits because they lost money...

...Or because their instant millions in profits didn't magically appear. Last I heard, the word "risk" still existed.

[Journeyman]

8. I was told years ago, "You can make quite a killing in the stock market". . .

The only thing is, in every killing someone's left dead.

[Zalatix]

11. Ah, we'll have none of that talk!

Don't ya know the market isn't a zero-sum game???

[cbdo2007]

14. You can't ALWAYS make a killing in the stock market....it takes at least some brain power.....

[sendero]

9. Anyone stupid enough to buy..

... Facebook deserves to be fleeced. You would have to live in a cave to not know that the IPO was severely overpriced and that the company's revenue prospects were and are meager at best.

Someday, everyone will understand Wall Street and their shenannigans. For the time being, there were just enough suckers left to float one last pink fart in a punchbowl.

[Zalatix]

10. I talked about SHORTING this stupid stock. I shoulda gone out and done it.

Assuming that you could do it, of course.

[Capt. Obvious]

13. $19 the floor?

I'm waiting for it to bottom out before buying

[Harmony Blue]

16. Yeah the short sellers are pummeling the stock right now

have to wait it out.

[cbdo2007]

17. Yeah, I still think it'll be over $50 by the end of the year.

And no....I don't think it's worth that much, but after all the hype has died off people will start bringing it back up to that IPO level and beyond.

[Capt. Obvious]

18. I think so too

Then it depends on where Facebook goes.