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How Can I Buy Facebook Stock?
Pinnacle Digest writes: To call the Facebook IPO a disappointment would be an understatement. As James West explains in the article linked below, the IPO was riddled with mistakes and was a downright disaster. Despite having several hundred million users, and nearly all fad investors asking the same question of "How can I buy Facebook stock?" the company flopped on its IPO.
In his article, James West explains his belief that Facebook (FB:NASD) could trend lower...much lower. Facebook's stock price is in question by many investors as the valuations are astronomical. West explains that if Facebook were to be valued by the market at 13 times earnings, like Google is, it should be priced around $6 - $9 per share. Instead however, Facebook is being valued at 85 times earnings as of Monday.
On top of the high valuation, West explains the growing competition Facebook is challenged with and how Google (GOOG:NASD) is starting to capture some of its audience. With a rival such as Google, it is questionable whether Facebook can retain its market share, never mind grow it much further.
West references a very telling poll conducted by the Associated Press & CNBC. It showed that half of Americans believe Facebook is a passing fad.
In addition, West points to the growing concern that the actual Facebook user base might be significantly smaller than what is reported. It’s hard to tell for sure, but given the fact that their are deceased persons with user accounts still open, as well as the fact that it is nearly impossible to close your account with Facebook, the numbers could be inaccurate.
Finally, if the blundered IPO wasn’t enough, last week a lawsuit was filed against the company for $15 billion from users for privacy violations and General Motors announced that it was canceling a $10 million ad contract due to ineffective advertising with Facebook.
Click here to read the full story on Facebook’s troubled times of late and what it could mean for its share price.