NEW YORK - Investors are wondering who to blame for their current investment loss in Facebook. The iconic social media company's stock has plummeted since inception last friday. What has the world come too that two days of stock market loss and suddenly it is what went wrong? Who cares, no one was in the wrong. How about the deal priced where people wanted to buy it.
Blame Morgan Stanley - People want to blame this investment bank. Who cares if the IPO originally priced at $38 and it has no fallen to $31. The question is why did MS even support the price last Friday. Who cares what the original investor lost. The investor's job is to value the securities it is not up to Morgan to say what the stock is worth. Furthermore, Morgan highlighted some concerns but who cares the investor is completely responsible for the valuation. On top of this point, there are lots of stocks on the market at ridiculous prices that do not make any logical sense. For instance a well known stock like Visa. If I had to price it I would price it today at $60 or $70, yet the stock trades at $120. So Morgan Stanley not only has to price stocks but it has to guess what the market is thinking. The fact is there is often a contrast to what a stock is worth and what it trades at. Therefore Facebook could go below its intrinsic value or Facebook could go above intrinsic value. Since these options are ever present it would be literally impossible to ever price anything where everyone is happy. Since it they price it below its intrinsic value it could still go down further and they could price it above and it could go up further. Meaning it is essentially irrelevant where they price it. As long as people want to buy it at that price, that price is good enough for me.
Blame Nasdaq - Facebook stock was delayed from opening for a half hour. Some amateur investors err day traders lost money trying to sell at market orders. Seriously who cares about these people. Who buys Facbook and has to sell it on day 1 and you honestly think I am going to feel sorry on this suck of society. And how does Nasdaq effect this. So many orders caused the company to find prices. This is amateur but at the end of the day those who placed market orders can't expect much else if the market swing 30% in a second. That is the risk one takes when putting in a market order.
Facebook is an unattractive stock because Mark Zuckerberg has all the voting power. There is no point every playing the dual class game. That means Google, Ford and Facebook are all do not owns. When the owners don't share the votes; we don't share our money.
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