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Wall Street Hates Facebook. No One Knows Why
- jussij 13y ago> The real question isn’t why Facebook got upgraded, it’s why Wall Street has returned to such a bearish position on the social network. I would have though basic math would answered that question. When Facebook floated they did not issue all they shares, but instead did a partial float. Based on that initial IPO offer and share price (which they got) that gave the whole company a market cap of about $100 billion. Now lets assume Facebook could manage a revenue of $5 billion (not the 1.7 mentioned in the article). Based on that $100 billion valuation that a 5% return on market cap. Most other companies on the stock market would be returning double or triple that return on investment. Consider Microsoft: http://finance.yahoo.com/q/ks?s=MSFT http://finance.yahoo.com/q/ks?s=MSFT Market cap of $291 billion with revenue of $76 billion. So unless Facebook can start to pull in some big numbers on the revenue side, it share price is looking way over priced and the market knows that.
- junto 13y agoI am an idiot. I bought at $29.85.