Facebook At $25: This Is Not A Glitch
|Image via CrunchBase|
UPDATE: Currently, the stock sits at $24.43, down 9% in after hours trading.LinkedIn's earnings have doubled every quarter since it went IPO, and so its lofty valuation has held ground. Facebook's IPO was a nosedive, and part of it was blamed on some kind of a technical glitch, but that could not have been the full story.
For the size of its user base Facebook has lukewarm revenues, and there are no plans/signs of robust growth there. The revenue trajectory feels like a plateau, and hence the hammering.
This is what I said on May 23.