Man this US decline is getting serious. We can’t even do an IPO for a BS company right anymore! — Doug Henwood on Facebook
The current Silicon Valley bubble has popped. We just moved here. There is much rationalization, hand-wringing, and blame-tossing going on in local startup-oriented blogs about why the Facebook IPO was a dud. Going forward, this Facebook flop will unquestionably hurt startups, venture capital funding, and mad dreams of riches by geeks.
The main reason the IPO was a dud was the valuation of the company. Have you seen the show Shark Tank? They would tell you the valuation was off by more than 10 times earnings. Could Facebook eventually be worth 100 Billion? Sure it could, but are you willing to wait 5 to 10 years and hold on to the stock to find out? I know people who bought Google stock at $60 a share and now it’s worth $600. But it didn’t get there overnight.
True, but Google also popped big on IPO day,. Facebook didn’t