Facebook Shares Dip Below $20 for First Time



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Keith E. Whisman

I've always felt that the shares should have been initially sold for $16 dollars a share to allow for profits from any increase in value. FB just wanted to get rich quick at $38 a share. There was never a chance they would go up from there for a company that makes all its money from advertising.



Not surprised... It has been going down ever since its IPO.



In my opinion, you really need to account for the herd mentality here. This stock came out overvalued and hyped, and there has be a drastic revaluation - which was needed. However, I would guess that much of today is all these new Facebook millionaires who had stock options trying to cash in. If I had seen my brand new fortune drop by 50% over 12 weeks, you can bet your bacon I'd be cashing out a good chunk, too. I bet Facebook's stock will go up from this point, at least modestly.



Don't buy high and sell low, buy low and sell high... Now is the time to buy...



So your strategy is buy low, sell lower.

Facebook is nowhere near a reasonable price. Realistic value is about $4-5 based on P-E ratio.



I have a much better strategy for ensuring no loss of income related to Facebook shares.
Don't... waste... money... on... Facebook.
I mean really.... Facebook shares worth more than many Bank stocks? Definitely over-valued. I'd say it will probably settle around $10-11 for a while. They were doing fine before the IPO... they should have just stayed that way.



you have to go public at a certain point depending on the amount of investors you have, i believe its 500+.

at $10 would be a good buy. they are making $1b/q now, they have tons of potential. i like the poker play i read somewhere, they'd be making $2-3b/q easily if they were able to run with that. fair valuation is 5x sales or profits.



$20 is still $20 more than I would pay for a Facebook share

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