Facebook shares slumped by 11% (from $38 to $34) today. Yet another set of interviews for us - eg see The Times Billions wiped off Facebook. Readers of our the $100b Facebook Question back in Feb will know that we suggested that a valuation of $50b (ie a share price of c$19) was nearer to ‘fair value’. We also said that all the real gains to be made had probably already been made by Facebook’s early investors. If we are right, we could be reporting on more declines in the months to come leading up to the lockup ending.
Footnote - Facebook is criticised for its mobile advertising. But has anyone been tempted to click on any ads on its main site? When I clicked on every advert on my 'page' today, it took me to a vendor site in the US. The #1 ad was for my High School Yearbook! Makes you wonder if Facebook has any advertising policy to appeal to UK users.