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Ok and this is what I don't get. Usually companies that are traded publicly have responsibilities toward stockholders to do anything in the power (reasonably) f

Ok and this is what I don't get. Usually companies that are traded publicly have responsibilities toward stockholders to do anything in the power (reasonably) for the stock to be going up. That the simplicity of a stock market - no investor is willing to lock its money knowing a company is not willing to grow. Now, if you have one guy (that to average person is called a "hacker in the hoodie"), how do you trust a stock? What if there is some terrible decision he is about to make and the board can do shit to stop him because he has the majority of vote. Basically, fatum of all stockholders money in this stock lays within one single guy and his 57% of vote. Can you imagine, hypothetically what would happen if tomorrow Mr. Zuckerberg is hit by the bus? ? Yes, I am sure they have backup plan for the backup plan in situations like that, but cant you imagine what kind of signal would that send to media? The stock would dive like a scubadiver on a deep-dive mission!

netrus 14y ago
The bus factor is priced in, as is the assumption that Facebook will dramatically increase its revenue in the long run. If Facebook would not grow anymore, the stock would instantly collapse.
- joering2 14y ago
  netrus, I don't think it works like that. You just described a crystal ball. You sure they know everything that is in this stock? Would there be a justify reason behind something called "Stock exchange" if everyone would know everything in the future? And what do you mean by instantly? Like the first day or first year, or what? because as far as I remember everywhere I talked with bankers, everyone from teen that just turned 18 to a 95 years old grandpa withdrawing last savings were going to buy Facebook stock. But this is not what Friday has showed to us. 2 things; either: a) entire world change its mind overnight (I spoke with banker as late as last Thursday), or b) there was so much selling happening, that if the world was buying, it wasn't just enough to build demand and push the stock up. I go with gate #2, considering how much underwriters were willing to buildup on $38. A $300,000,000 worth dam!! I guarantee you, plenty of big fish is shitting in pants right now. To many of them this weekend, before Monday opening, is not a chilling out and relaxing time. I think by next Friday you will see some spectacular action on this stock. Further, I think that Zynga, Groupon, Zillow, Linkedin, ZipCar, Pandora and others -- they are all assuming dramatically increase in revenue. But yet they are all below (some significant like Groupon or Zynga) their IPO price.

netrus 14y ago

The bus factor is priced in, as is the assumption that Facebook will dramatically increase its revenue in the long run. If Facebook would not grow anymore, the stock would instantly collapse.

joering2 14y ago
netrus, I don't think it works like that. You just described a crystal ball. You sure they know everything that is in this stock? Would there be a justify reason behind something called "Stock exchange" if everyone would know everything in the future? And what do you mean by instantly? Like the first day or first year, or what? because as far as I remember everywhere I talked with bankers, everyone from teen that just turned 18 to a 95 years old grandpa withdrawing last savings were going to buy Facebook stock. But this is not what Friday has showed to us. 2 things; either: a) entire world change its mind overnight (I spoke with banker as late as last Thursday), or b) there was so much selling happening, that if the world was buying, it wasn't just enough to build demand and push the stock up. I go with gate #2, considering how much underwriters were willing to buildup on $38. A $300,000,000 worth dam!! I guarantee you, plenty of big fish is shitting in pants right now. To many of them this weekend, before Monday opening, is not a chilling out and relaxing time. I think by next Friday you will see some spectacular action on this stock. Further, I think that Zynga, Groupon, Zillow, Linkedin, ZipCar, Pandora and others -- they are all assuming dramatically increase in revenue. But yet they are all below (some significant like Groupon or Zynga) their IPO price.