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Facebook (FB -13.2%) tumbles in early trading to $33.20; even after the selloff, the company...

  • Monday, May 21, 2012, 9:54 AM ET
    Facebook (FB -13.2%) tumbles in early trading to $33.20; even after the selloff, the company trades at nearly 23x sales and 75x trailing EPS. Not helping is BTIG's decision to launch coverage at Neutral; in-line with earlier comments, the firm is worried about Facebook's valuation, decelerating growth, and ad monetization issues. Also lower: RENN -8.3%. ZNGA -7.1%. YELP -6.8%. LNKD -6.1%. GRPN -4.8%. SVVC -7.4%. GSVC -10%.
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This news story has 16 comments:

  •  
    LOL

    Teens here we come, and predictions? $13?
    21 May 2012, 09:57 AM Reply Like
  •  
    My valuation is $18.
    21 May 2012, 10:05 AM Reply Like
  •  
    I got out at $35.50 only had 25 shares @ $40 so not a big loss, was hoping to flip like everyone else.
    21 May 2012, 10:15 AM Reply Like
  •  
    Same here...TD filled my order at 42.10, and got out a few mins ago at $34.00.

    Last time I try to make a quick buck!!!
    21 May 2012, 11:04 AM Reply Like
  •  
    @Tom

    Sorry to hear about the loss - hopefully it was not a big investment for you. But, as they say, every loss is a teaching moment.

    In addition to "poppers" like yourself, I assume some people were also thinking they didn't want to miss out on the next GOOG, but the valuation and business model for making profits was too questionable for me. This will only sour the retail investor even more.
    21 May 2012, 11:48 AM Reply Like
  •  
    I said it b4 and i'll say it again

    Zukerberg made a sukerberg out of everyone that bought his POS
    21 May 2012, 10:33 AM Reply Like
  •  
    Well, if $FB had the P/E of $GOOG, it would be trading around $5.7 ... but then again, if $AMZN, a company without any profit margin whatsoever, is assigned a P/E of 200... while $SPLS, which has a much better business model than Amazon trades at a ridiculous low P/E of 9.5...

    ... only time will tell how $FB is going to be worth.

    I'll stay away. It's a complete gamble at this point.

    In 2 months, $AMRN will probably double... a much better investment right now. :-P
    21 May 2012, 11:02 AM Reply Like
  •  
    I can't wait until shorting FB is permitted.
    21 May 2012, 11:30 AM Reply Like
  •  
    I can't wait until shorting is permitted.
    21 May 2012, 11:30 AM Reply Like
  •  
    Short Sales will be permitted Tuesday. Options start trading on May 29.
    21 May 2012, 01:46 PM Reply Like
  •  
    I was in at 38.13 and double up today at 34.92. So I've got a 100 36.52. I'm going to wait a while.
    21 May 2012, 02:41 PM Reply Like
  •  
    I think that was a bad play, the smoke hasn't even cleared on it...65 p/e and everyone is taking a step back because in the frenzy we were all taken advantage of. MS and GS will be next on the lawsuit target list, and these lawsuits might stick, no matter how frivolous.
    21 May 2012, 10:04 PM Reply Like
  •  
    One of the main problems continues to be that the system is still overwhelmed. From Fidelity - execution of orders "continues to deal with the aftermath of Friday's market issues in delayed processing of orders for Facebook (FB) stock. As they did then, Fidelity's systems continue to operate normally. Although some executions were reported back from market makers over the weekend, we are still waiting for final responses on other orders. This is an industry-wide issue and we are working aggressively to address it." Looks like some of you had the luck (good or bad??) to get in and out/hold. I am hearing that some are still in limbo and cannot even get trade confirmations. Good thing this was not a Dutch Auction, I can see visions of Vonage!
    21 May 2012, 05:14 PM Reply Like
  •  
    I am a Reator In The State of Nevada and Headquarters in the Metropolitan Las Vegas Valley. I am a Rental Specialist and do own some very nice Stocks and Mutuals. I Have not involved myself in FB to buy in, as yet. I did Put a Buy into my Broker at $25.00 however, I will change it to $20.00 today.
    I never had any faith in FB as it was to my tinking a place to air out hiidden desires. I do have an account which I don't use at all.
    29 May 2012, 03:05 PM Reply Like
  •  
    Why buy a stock you have no faith in?
    29 May 2012, 03:11 PM Reply Like
  •  
    Forget $FB.

    If you want tech, go for $IRBT while the stock is cheap.

    Otherwise, just go all in $AMRN until 26 July. It currently trades at $12.27 and I suspect it will surpass $FB in less than 60 days. :-P
    29 May 2012, 06:01 PM Reply Like
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