Facebook is speculative

Facebook is speculative
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First Published: Mon, May 28 2012. 10 42 PM IST

Photo: Bloomberg
Photo: Bloomberg
Updated: Mon, May 28 2012. 10 42 PM IST
As was true of the dot-com bubble, so with the Facebook bubble: There’s a need to lie in the aftermath about what caused it.
Photo: Bloomberg
It wasn’t “hype”. Whatever organs of the media investors turned to, they found a range of views about Facebook’s value, including scepticism. In the dot-com bubble, investors did it to themselves. In the Facebook bubble, if we may call it that, those who lined up to buy the stock at $38 did so with eyes open.
Yes, Facebook’s initial public offering (IPO) was a comedy of errors, and a price will have to be paid by those involved. But the claim that has excited the media and strike-suit lawyers is a red herring. Even if it’s true that analysts at the underwriting banks quietly reduced their revenue estimates based on public information released by Facebook, so what?
Click here to read full article.
Holman W. Jenkins, Jr is a columnist at The Wall Street Journal.
—THE WALL STREET JOURNAL
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First Published: Mon, May 28 2012. 10 42 PM IST
More Topics: Facebook | Google | Internet | Social Media | Web |
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