Why is the Facebook stock going down?
The Facebook stock seems to be going down and finding hard time getting friends to like it. The stock went down 11% on the second day. I wonder whether the banks are going to put more of their money into the stock to keep the prices steady. It could even be a smart ploy by the banks to let the stock go down for a few days, then make it bounce by a bit and encash all of their investments.
Replies
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Ankita KatdareI am not really sure about that, but I have just realized that some people dont just like Facebook, they just love it.
This video speaks for it all -
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Kaustubh KatdareWhat's people's love got to do with the stocks?
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Ankita KatdareThere is no relation, but with all the negative news regarding the IPO, this video was an unexpected respite for Facebook fans.
I think there is only one way to look at it. The Facebook stock was overrated and that much hype did not match with the stock's worth.
One market expert even said there was 'no reason' to invest in the company, claiming that jumping on the Facebook bandwagon would be like 'catching a falling knife'
If we ask, why is it going down? The financial analysts are the best people who can answer.
Some of them are suggesting that Facebook issued too many shares in the first place, while others believe that the financial firms couldn't handle the deal well. Some others have gone over the board by saying that Nasdaq itself is responsible, since it failed to anticipate the trading demand, leading to serious technical difficulties and a long backlash in processing deals.
Do we have any experts here who can give a verdict? -
Manish GoyalThis all reminds me of Reliance Power IPO , that had come last year, People were so much crazy about it , Even they were some lottery system to buy share of that in advance, but when it was released , goes down results in heart attack to 2 people in my area , not sure about others
anyway I think this must be some kind of market strategy i guess
You are reading an archived discussion.
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