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The banks who helped boost the price around the IPO are reclaiming their capital gradually, letting stories like this happen, and letting Facebook plan out the
by grandalf 14y ago
The banks who helped boost the price around the IPO are reclaiming their capital gradually, letting stories like this happen, and letting Facebook plan out the next phase of its capital generation strategy. Giving early investors a strong exit was part of the plan.
The biggest irony is that spectators view the downward trend in share price as evidence that the early price was hype driven. In reality, both upward and downward trends are equally impacted by hype.
I plan to invest when the price gets to $15. The only alarming sign so far is the massive number of ads for Target that appear daily on the mobile version. Clearly a few large companies made big ad purchases, and Facebook now regurgitates the news that a friend liked Target again and again at every opportunity. It's supremely annoying and might actually make me stop using Facebook.
- clobber 14y agoYet you still plan on investing?
- grandalf 14y agoSo far I've seen Facebook recover from a lot of bad decisions. I think the leadership at the company is very strong and that the core business concept ads lots of value to a lot of people's lives.
- clobber 14y agoDisagree. It's been one privacy blunder after the next- each further tarnishing the reputation of the company and service. If you find oversharing, memes and cat pics valuable, then yes it's "valuable."
- grandalf 14y agoI look at it as a tension between things that humans find viscerally entertaining vs privacy that we would all value if we were rational. Sort of a classic challenge analogous to the difference between homo economicus and regular people.