by Jack
Face book dropped another 8.5% as of this moment. It was an up day for the rest of the market, but this stock is being hammered. Marketwatch had this to say, “S&P Capital IQ reiterated its sell rating on the stock citing media reports that the company may be looking to buy browser company Opera Software and offer its own smart phone.
“FB’s platform positioning and monetization capabilities seem more limited without proprietary mobile software and hardware,” analyst Scott Kessler wrote. “We think FB is at an interesting juncture, as not being more proactive on the mobile front could affect its competitive standing, but being too aggressive could adversely affect its profitability.”
Face Book is off over 20% from its original IPO. I’m thinking even my $25 valuation might have too generous for this stock.
If the stock had opened at $6 it would have been overvalued. It is hard enough to find a reasonable, stable stock in a company that actually produces something, why anyone would invest real money in a pretend business is beyond me.
Last week, I was without a computer but I could read PS on my phone. Anyway, someone was hammering one of the usual suspects about GE by listing things that GE produces. One major thing I didn’t see on that list was jet engines. Jet engines are a huge part of their business. I am just pointing that out.