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Response to cbdo2007 (Reply #8)

Wed May 23, 2012, 04:24 PM

20. Entirely possible it will go even higher. So? What will it prove?

 

It's still a beachball at a college football game. Its altitude has nothing to do with underlying value. It will be one of those "it" stocks that people love for high volume and constant volatility. Among all the trader-addicts large and small, who doesn't hope to take a 10 percent ride every day? You may think it's the next Apple, but it looks more like all the bullshit dot-coms of a decade ago. An eminently replaceable social media platform that will peak in membership and has tiny earnings for the market value. If they add too many ads, people will start to leave. If people start to feel uneasy about how they're using all the data, it could avalanche. One minor Zuckerberg sex scandal could sink it overnight. Remember myspace, etc. etc. On the other hand, they now have enormous resources, so if they get lucky and buy just the right start-ups, they might end up having a real company out of this. But right now Facebook has all the potentials of AOL valued above the level of Time-Warner, if you remember.

And you're right, this is how the market "should" work, from the perspective of its makers: they pump, they dump, and they eat most of the little suckers on the way up and down. Everyone's fully distracted by a complete bullshit story (Facebook stands in for the health of capitalism, or America). Millions of idiots think they're going to stay ahead of high-volume super-fast traders in a rigged game. Until the inevitable next clean-out. This is what the market is. Since when do the banks and funds and underwriters who make the market believe in the bullshit you're saying about "it should take a year or 2 to make 10%." To them, anyone who thinks that way is a loser. Insufficiently sociopathic. A worthy target. Plunder them and laugh. It's the will of evolution. Insert Michael Douglas/Alec Baldwin speech. Etc. etc.

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brooklynite May 2012 OP
Myrina May 2012 #1
spiderpig May 2012 #2
drm604 May 2012 #3
JackRiddler May 2012 #4
Fearless May 2012 #5
malthaussen May 2012 #6
Brother Buzz May 2012 #16
EC May 2012 #7
cbdo2007 May 2012 #8
frylock May 2012 #9
elleng May 2012 #11
elleng May 2012 #10
salib May 2012 #19
LineLineNew Reply Entirely possible it will go even higher. So? What will it prove?
JackRiddler May 2012 #20
yellowcanine May 2012 #22
Incitatus May 2012 #12
Poll_Blind May 2012 #13
florida08 May 2012 #14
marions ghost May 2012 #15
Bozita May 2012 #17
Poll_Blind May 2012 #18
yellowcanine May 2012 #21
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