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This is a very bad sign, Facebook expects a big drop in his valuation and they can't raise money that cheap for a long time. The big question is, do first time
by sek 14y ago
This is a very bad sign, Facebook expects a big drop in his valuation and they can't raise money that cheap for a long time. The big question is, do first time investors know that Facebook has no confidence in it's own stock.
Does anybody know what happens when Facebook can't sell for it's initial price? There is a real chance, 16Billion and a lot of analysts think they are overvalued.
- loverobots 14y agoI think (not a pro at this) all those shares have already been sold via IPO road shows to pension funds, banks, hedge funds and other investment houses. In fact, I read they wanted even more shares than FB offered to sell ("oversubscribed.") So no major surprises. I doubt they just pick a number and just hope to sell $16 Billion
- sek 14y agoWhat happens when these institutional investors lose Billions in a short time? There will be lawsuits over lawsuits. If Facebook drops over 20% this year, shit will hit the fan. They don't wan't to take the blame, but have no power inside Facebook either. I wonder how they react, Zuckerberg can get powerful enemies here.
- lftl 14y agoInvesting inherently involves risk. Assuming there's nothing fraudulent in FB'S filing documents what would investors sue over?
- beagle3 14y agoAre you aware of a recent case where an institutional investor representing "dumb" money (e.g. Pension funds) was successfully sued for bad investments? I am not.
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